Connect with us

Business

Home Loan Repayment – Smart Tips & Loan Repayment Strategies

Published

on

loan repayment

home loan is one of the biggest financial commitments in an individual’s portfolio. Today, thanks to the availability of numerous home loan deals, dozens of lenders and HFCs, getting a home loan is easier than ever before. The biggest challenge here is repaying the home loan on time. 

Paying off a home loan is a challenge – primarily due to the longer tenures. Unlike personal loans and bike loans, which are generally short-term, home loans have a longer-term ranging from 10 to 30 years. So, you have to ensure that you have a steady source of income to pay off the loan as per schedule. 

With that said, you can save lakhs on home loan repayment. Yes, you read that right – it’s possible to cut down the repayment amount. Continue reading to find the best tips and strategies to save money while repaying your home loan. You can also get idea how money transfers work.

Tips to Save Money on Home Loan Repayment 

Home loans are big-ticket, long-tenure loans. As a result, the interest repaid on a home loan is usually on the higher side. However, with proper planning and smart strategies, you can save money on home loan repayment. 

#1: Do Your Homework

The critical step to reducing home loan outgo is to select the right loan offer. Leading banks and HFCs have steadily reduced home loan interest rates since the last quarter of 2020. While this helped in boosting home loan demand, it’s a huge benefit for home loan borrowers. Experts predict that low-interest rates are here to stay, despite the pandemic. 

Several leading lenders like State Bank of India, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, LIC Housing Finance, Axis Bank have reduced home loan interest rates in 2020 and even slashed them further in 2021. Currently, home loan rates start as low as 6.65%. 

Top Home Loan Interest Rates for 2021

Here’s a quick comparison chart that lists out the current interest rates at leading lenders. 

home loan is one of the biggest financial commitments in an individual’s portfolio. Today, thanks to the availability of numerous home loan deals, dozens of lenders and HFCs, getting a home loan is easier than ever before. The biggest challenge here is repaying the home loan on time. 

Paying off a home loan is a challenge – primarily due to the longer tenures. Unlike personal loans and bike loans, which are generally short-term, home loans have a longer-term ranging from 10 to 30 years. So, you have to ensure that you have a steady source of income to pay off the loan as per schedule. 

With that said, you can save lakhs on home loan repayment. Yes, you read that right – it’s possible to cut down the repayment amount. Continue reading to find the best tips and strategies to save money while repaying your home loan. 

Tips to Save Money on Home Loan Repayment 

Home loans are big-ticket, long-tenure loans. As a result, the interest repaid on a home loan is usually on the higher side. However, with proper planning and smart strategies, you can save money on home loan repayment. 

#1: Do Your Homework

The critical step to reducing home loan outgo is to select the right loan offer. Leading banks and HFCs have steadily reduced home loan interest rates since the last quarter of 2020. While this helped in boosting home loan demand, it’s a huge benefit for home loan borrowers. Experts predict that low-interest rates are here to stay, despite the pandemic. 

Several leading lenders like State Bank of India, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, LIC Housing Finance, Axis Bank have reduced home loan interest rates in 2020 and even slashed them further in 2021. Currently, home loan rates start as low as 6.65%. 

  • If you’re on the lookout for a new home loan, it makes sense to compare the interest rates offered by different lenders. Loan aggregator portals like CreditMantri make it easy to compare and evaluate interests provided by other lenders quickly. Compare and pick the lender who offers you the best deal.
  • Make sure to consider the other factors besides the interest rates. Two banks may offer the same interest rate, but there might be differences in processing fee and additional charges. So, while evaluating lenders, make sure to consider all costs. 

Not doing adequate research before applying for a home loan can cost you additional expenses that can be easily avoided.

#2: Save Before You Apply for a Home Loan 

Home loan preparations should start long before you apply for one. Take some time (around six months to one year) saving for the down payment. Invest your money in short-term funds to pay for the down payment. The larger the down payment, the lower the loan amount and lesser the interest outgo. So, try to save a large down payment to save money on the interest payable. 

#3: Negotiate with the Lender to Reduce Interest Rates 

If you’re on a floating loan rate, then the interest rate on your home loan will be automatically changed as per market conditions. However, if you’re on a fixed loan rate, your repayment is set as per the initial interest rates. 

However, you can still negotiate with the lender to adjust your ongoing interest rates. This is likely to work out if you have been a customer with the bank for a long time and maintain other investments with the bank. 

Get in touch with your relationship manager at your bank to see if it’s possible to negotiate and reduce ongoing interest rates. 

#4: Prepay your Loan 

Prepaying an ongoing home loan ahead of schedule is a great way to reduce the total interest payable. However, prepaying a home loan is easier said than done. You have to maintain financial discipline, budget your finances, and plan accordingly to repay the outstanding loan amount in one go. Alternatively, you can also part-pay the balance to reduce the due loan amount and interest balance. 

Before you prepay your home loan, make sure to calculate the prepayment charges and other fees to see if the savings are worth it. 

#5: Go for a Home Loan Balance Transfer 

A home loan balance transfer is the process of transferring an ongoing home loan from one bank to another. The main reason for a home loan balance transfer is to take advantage of the lower interest rates offered by the new lender. Balance transfer helps to cut down the interest amount significantly. 

With the currently prevailing low home loan interest rates, it makes sense for existing home loan borrowers to switch their loans from a borrower with high rates to lenders offering lower interest rates. Contrary to popular misconception, a home loan balance transfer is not complicated and easy provided you have the proper documents and meet the eligibility conditions specified by the new borrower. 

  • Here’s an example. Let’s say a customer has taken a home loan for Rs. 30 lakhs at 8% for a tenure of 20 years. By switching his ongoing loan to a lender who offers an interest rate of 6.65%, he can easily save Rs. 2460 per month on his EMI. This translates to a savings of over Rs. 5.90 lakhs in 20 years. 
  • When you transfer a home loan, make sure not to reduce the EMI if you want to complete the loan quicker and save money.
  • With steep drop-in home loan interest rates, it’s a good time to transfer your home loan, especially if you’re paying high-interest rates on your current loan. 
  • Home loan balance transfers are especially beneficial if you have a longer tenure remaining. For example, a customer who has an Rs. 50 lakh home loan can save Rs. 4100 per month on the EMI by switching from 8% interest to 6.65%. This translates to a total savings of Rs. 39.36 lakhs over the loan tenure. 

Final Thoughts 

Though repaying a home loan can be expensive, you can still save money by following the five aforementioned strategies. When it comes to saving money on your home loan, financial commitment is critical. Ensure that you repay EMIs on time. Also, keep in mind that you can always make part-payment on the outstanding loan to reduce the interest outgo. Use the strategies listed here to save money on your home loan repayment.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Do’s and don’ts of business networking

Published

on

Do's and don'ts of business networking

Business development is something that is a constant focus of most businessmen. There are many things that a businessman has to take care of in order to ensure that business is growing at a good pace. Among other things, networking is something that helps a business walk on the path of constant development and growth. 

Talking about networking, it is like those necessary evils that when used adequately benefit you well. Now the ability of good networking is not something a person is born with. One has to over the course of time develop the skills of developing healthy and beneficial relationships. 

Well, developing the skill to build good relations takes time and practice. There is a lot one learns from experience and so today we will be talking about the do’s and don’ts of business networking. 

Do

Approach 

In networking events, do not hesitate to be the one who approaches first. Networking events are held so that you can meet new people and make new connections. Often people go to networking events hoping to meet some new people and so they go to such events by themselves. 

You can feasibly approach someone and start off a conversation politely. All you have to do is be a little confident and clear with what you say and you will be good to go. You don’t need to worry about anything, you just need to approach and see where things go. 

Use Social Media Carefully 

Your presence on social media as a business plays an important role in what impression you leave on your audience. When you connect to people through social media you have to be careful with the content you post on your handle. 

You have to remain professional all the time and ensure that you avoid getting involved in any political or offensive content. Apart from that, you also need to be active on your social media regularly so that you keep your audience active as well. 

Listen And Learn 

One of the most important factors of networking is listening. The whole point of networking is connecting with people that benefit us and learning from them for our own betterment. At networking events, people are often promoting themselves. However, if you choose to listen instead, people are more likely to value you and remember you. 

Apart from that, listening has its own benefits, the more you listen to people you get to know different perspectives and opinions that help you form your approach. Moreover, it is listening to others or rather more experienced people that help you learn. 

Don’t

Neglect Business Cards 

Networking and marketing go hand in hand. We all know that a business card is the most basic tool one can use for marketing or even networking. Exchanging business cards is something that has been around since the very beginning and is still considered one of the best ways to exchange information. 

However, with the developments in technology, these cards seem to be neglected. However, you need to make sure that you don’t make the mistake of neglecting these business cards. When it comes to staying put with technology you can always use a virtual business card

Be Forceful 

It is often a tendency of people to be a little pushy when you really want to crack a deal or form a good connection with someone. However, this forceful nature of being overly persistent will cause more harm when trying to make a connection. 

Being forceful often promotes aggression and makes people lose interest very quickly. One needs to have a sense of when to stop insisting on a conversation. All you need to do is be as patient as possible and wait till you get a positive response. Other than that, being pushy is pretty contradictory to being professional. 

Be Unprepared

The last thing you want in networking is not knowing what to do. Let’s say if there is a business event or a networking event that is filled with opportunities to meet new people and build new connections, and you don’t have enough information about it, doesn’t sound good, does it? 

Well, this is exactly why you should always be prepared for any business or networking event. You need to have a good idea about what you need to know from others and what you need to tell them about yourself. Lastly, you don’t want to find yourself caught short on information that would have benefited you otherwise.

Continue Reading

Business

The 10 Best Sites That Are Like Afterpay

Published

on

Best Sites That Are Like Afterpay

Have you used Afterplay before? Although they offer the great benefit of making purchases, receiving your products now and paying later, there are other options that you can also consider if you want to try another platform with similar services. Some of the factors why people start looking for alternatives to this popular app is the improved customer service level, an interface that is more intuitive to use or due to the fact that they have built a good and reliable brand. In this article you will see a series of payment gateways similar to Afterpay, as well as a practical short review.

1. Sezzle

Although this app is more expensive to use, they offer the option to buy now and pay later without having to worry about the interest, as long as you pay your installment plan before the previously accorded due date.

2. PayPal Credit

Just as you may imagine, this version of paypal gives you the flexibility to buy those things you probably can’t afford just now, you can get your order now and pay over time, just consider that the services of this app are more expensive.

3. G2 Deals

This is another buying software that takes pride in being cheaper than its competitors, and they have built a trusted business among users, plus they offer extra benefits to their customers.

4. Affirm

If you are looking for a fin tech solution that allows you to put your finances in order through their online services, you might consider this alternative. They have a great interface but it’s more expensive than Afterpay.

5. Klarna

This payment gateway provides the common payment methods and focuses on giving their users outstanding support. At Klarna, they will do an amazing job to meet or exceed your expectations and their app is in general very easy to use.

6. Splitit

Considered as a suitable alternative if you are looking for a company who offers services at a worldwide level. By using this app your payments will be required on a monthly basis instead of the 2-week period provided by Afterpay.

7. Zip

They will offer you the flexibility of splitting the total charge of your purchase in four parts and pay for them later. Although this is a more expensive deal, you will enjoy a better built app as well as more dedicated customer service.

8. SecurePay

This is the best option overall in our rank, thanks to the set of benefits you will enjoy with this payment gateway provider. If you want to have the freedom of scheduling your payments without any kind of setup charge or monthly/annual fees, this is your go to. Plus, your transactions will be protected by their FraudGuard service, which you get for free.

9. Go cardless

An online payment tool that delivers what they offer, you can learn how to use it very fast and the customer service is wonderful. Just keep in mind that there is a 1% fee per transaction.

10. FuturePay

Just like the name describes it, it will allow you to buy things now and pay later without needing a credit card. While they are reliable and the app has a friendly interface, their service is more pricey.

Continue Reading

Business

Ways to Use Brochures to Advertise your Brand

Published

on

Ways to Use Brochures to Advertise your Brand

Custom brochures are the most significant marketing tool for your brand. Many companies are advertising their brochures to create a sense of familiarity with their brand and provide information about their services as a way to initiate and develop relationships with potential customers.

Why use brochures?

A brochure can be an effective way to get a message across. Most companies spend heavily on brochures because they know that brochures have the power to sell their brand and make money. A compelling brochure can have many forms like direct mail, postcards, and more. The value of the content can easily be increased by designing it for social media.

Tips for Looking Trendsetting

Occasional updates to your existing marketing material can help you improve how your brand is perceived, how long it takes someone to reach a decision on purchase, and how likely they are considering a purchase. Staying on top of trends with the use of brochures can also boost prospects for high return, low-cost marketing campaigns.

Use Product Brochures

If you need to establish your brand, improve the effectiveness of your marketing campaigns with brochures. They can be produced in a plethora of ways and may serve several roles depending on the needs of your campaign. A used as a marketing tool to knock doors your product can be displayed or just provide important information like contact info or product specifications.

How to design a product brochure?

Product brochures are a part of marketing strategy for any company. Many businesses opt to include a brochure that features their company as well as an individual product. Designing an eye-catching brochure is time consuming and takes more than just your typical type of fonts and layout. You’ll need to consider what colors you want your design to be made in, what will appeal most to your audience, etc.

What paper choices are there for your custom brochure?

There are several different choices when it comes to publishing your custom brochure. You can choose from glossy or other fine-grained papers, or print on a website that offers an interactive design like infographics, papers woven in transit and much more. To tailor your marketing strategies with certain materials, think about what message you would like to convey the world with your custom brochure. Choose between the glossy paper for high-quality printing, or the matte finish for consumer convenience when you need to manage multiple copies on-the-go.

Tip for Look Trendsetting

Brushing your teeth is one of the simplest ways to change up your appearance, but the easiest way to see a noticeable difference in how others look at you might be by changing up brochures. You want people to read them for hours on end and leave with a heartfelt message about how awesome you are and what your brand does for them, right? So go out of your way to make these things as eye-catching as possible. Use bright colors, slick paper, large fonts and more and watch as competitors turn green with envy!

Continue Reading

Trending

Copyright © 2021 | Chatonic | All rights reserved.