{"id":80,"date":"2020-02-19T12:13:23","date_gmt":"2020-02-19T12:13:23","guid":{"rendered":"https:\/\/www.loanfasttrack.com\/blog\/?p=80"},"modified":"2020-03-27T16:42:36","modified_gmt":"2020-03-27T16:42:36","slug":"know-how-to-deal-with-the-increasing-interest-rates-of-housing-loans","status":"publish","type":"post","link":"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/know-how-to-deal-with-the-increasing-interest-rates-of-housing-loans\/","title":{"rendered":"Know How To Deal With The Increasing Interest Rates Of Housing Loans"},"content":{"rendered":"\n
\"housing<\/figure>\n\n\n\n

With a change in the economic\nconditions & inflation the RBI alters the Repo rates for the banks. A\nreduction in the repo rates carries well news in itself for all home loan\nborrowers while even a slightest increase in the repo rates pinches the pockets\nof the borrowers. This is because the banks in no time increase the rate of\ninterest for its borrowers with the increase in the repo rate by RBI, which\nfurther has an impact on his monthly EMIs.<\/p>\n\n\n\n

While there is no easy way out to\ncontrol the impact of these external factors, the following outlined 4 ways can\nhelp to minimise the effect of increased interest rates on your increasing\nEMIs.<\/p>\n\n\n\n

1) Make Part- Payment Towards The Loan<\/strong><\/p>\n\n\n\n

Making a part-payment of the loan is\none of the best options as it will help to lower the overall interest outgo. Using\nsurplus cash to pay off the some part of the loan can be a good option for\nthose borrowers who are at the beginning of their loan tenure. The savings made on the interest\npayable by the borrower more than make up for the interest he has to forgo.
\n
\n<\/p>\n\n\n\n

2) Increase The Home Loan Repayment Tenure<\/strong><\/p>\n\n\n\n

Most borrowers are advised by the\nbanks to increase their home loan repayment tenure that will help them to keep\ntheir EMIs intact. Most banks, by\ndefault, extend the repayment tenure. This can be a good option for a borrower who think an\nimmediate money savings on EMI is his priority owing to manage the multiple\ndebt outgo (when he has other obligations such as personal loan, credit card\noutstanding, society loan, mortgage loan, .etc along with the home loan. <\/p>\n\n\n\n

3) Increase The Per Month EMI Outgo<\/strong><\/p>\n\n\n\n

It is important to note that when the rates are hiked & loan\ntenure extended, the interest outgo also increases. Therefore in order to save\non the interest factor a borrower may request bank to hike his per month EMI to\nan amount he can afford to pay per month. This may contradict 2nd<\/sup>\nway of handling the increased interest rates, but ideally if the borrower\nincreases the EMI and insist on reduction in loan tenure he will gradually pay\nless total interest amount over the loan tenure.<\/p>\n\n\n\n

4) Switch Loan To A New Bank With Low Rate<\/strong><\/p>\n\n\n\n

Despite of the prepayment plans and rescheduling of the loan tenure if the rate hike still has a substantially high impact on the borrowers loan then there exists a need to explore transferring the loan to another bank that can offer a rate lower than the existing interest rate.

Visit us for more info- https:\/\/www.loanfasttrack.com\/<\/strong><\/a> <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

With a change in the economic conditions & inflation the RBI alters the Repo rates for the banks. A reduction in the repo rates carries well news in itself for all home loan borrowers while even a slightest increase in the repo rates pinches the pockets of the borrowers. This is because the banks in …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[28,25,11,13,9,12,19,27,20,29,26],"class_list":["post-80","post","type-post","status-publish","format-standard","hentry","category-finance","tag-business-loan-in-mumbai","tag-home-loan-balance-transfer","tag-home-loan-in-mumbai","tag-home-loan-rates-in-mumbai","tag-home-loan-transfer","tag-housing-loan-in-mumbai","tag-instant-loan-in-mumbai","tag-instant-personal-loan-in-mumbai","tag-loan-services-in-mumbai","tag-mortgage-loan-in-mumbai","tag-personal-loan-in-mumbai"],"_links":{"self":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts\/80","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/comments?post=80"}],"version-history":[{"count":1,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts\/80\/revisions"}],"predecessor-version":[{"id":81,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts\/80\/revisions\/81"}],"wp:attachment":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/media?parent=80"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/categories?post=80"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/tags?post=80"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}