How to effectively manage your PNB home loan EMI

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Considering the increasing demand in the real estate sector, many lending institutions provide home loans to individuals who need financial help to purchase their dream houses. Many aspiring homeowners avail of a home loan in India.

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Those who fulfill the lender’s eligibility criteria and have their down payment ready face no difficulty getting a home loan. However, managing the EMIs and repaying them on time is more significant than getting a housing loan.

Skipping EMIs is risky as they negatively affect the credit score and lead to hefty penalties.

Getting a PNB housing loan is a long-term commitment that involves a significant financial decision for the borrower. Here are a few tips to efficiently manage home loan EMIs like a pro.

Compare and get the lowest interest rates

Conducting extensive research and comparing different lenders is the most important step before taking a home loan. Compare the interest rates different lenders are offering and opt for the one offering the cheapest rate according to loan eligibility. Opting for a loan with a cheaper interest rate will ensure that the EMIs do not become a burden on the due date.

Schedule while prioritizing the EMIs

Another crucial tip is to make PNB housing loan EMI repayment a top priority among your financial obligations. Paying the EMI before the due date will enhance credibility and boost your credit score. A piece of advice is to schedule an automatic payment a couple of days before the due date. It will avoid missing the EMI payment as long-term default may cause the property to become attached to the bank.

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Opt for a bigger EMI

While opting for a bigger EMI seems challenging, maintaining a higher EMI helps clear the home loan sooner and build a credit score. Paying bigger EMIs also reduces the total interest outgo by the loan term-end. Therefore, evaluate your finances and explore the affordability options before selecting an EMI amount.

Make use of an EMI calculator

PNB Housing also has an EMI calculator on its website. This user-friendly online tool calculates the EMI amount for different loan terms based on the applicant’s loan amount, interest rate, and loan term. An accurate insight into the EMI payments helps choose a loan scheme suitable to the borrower’s monthly budget and repayment capacity.

Save for a bigger down payment

According to many PNB housing finance reviews, saving money for a bigger down payment is recommended before applying for a home loan. A bigger down payment means the borrower needs to borrow less. Consequently, it helps reduce the loan amount required, reducing the loan burden and keeping the EMIs easily affordable.

Pre-pay whenever possible

Pre-paying the loan seems like an additional financial liability that no one would want to take, but this simple trick will pay off in the long haul. Try to make at least one extra EMI payment each year, which will reduce the loan term by a few years and save on the interest cost.

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Following these simple suggestions diligently will help manage the home loan EMIs efficiently. The trick is to handle money wisely and mindfully. This will keep the borrower worry-free about missing the PNB Housing loan EMIs or struggling with them.

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