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Home Loan Repayment – Smart Tips & Loan Repayment Strategies

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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.

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How To Increase Your Company’s Profits?

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Company's Profits

If you’re looking to increase your company’s profits, there are a few things you can do. Keep reading to find out what you can do to make your business more profitable.

Implement diversity, equity, and inclusion practices.

There is a lot of research that supports the notion that diversity, equity, and inclusion (DEI) are a must in the workplace. DEI can help you increase your company’s profits by creating a more inclusive environment where all employees feel valued and can contribute their best work.

A study by McKinsey & Company found that companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians. Furthermore, companies in the top quartile for gender diversity are 15 percent more likely to have financial returns above their respective national industry medians.

This research shows that a more diverse and inclusive workforce is a financial boon for companies. DEI policies and practices create an environment where all employees feel valued and can contribute their best work. This in turn leads to innovation and improved decision-making.

Seek out CFO advisory services.

A CFO advisory service is a service that provides companies with advice on financial planning and management. CFO advisory services can help companies improve their cash flow, optimize their spending, and make more strategic decisions about their finances. By using a CFO advisory service, a company can get an outside perspective on how to improve its financial situation and increase its profits.

Cut costs and increase efficiency.

One way to boost profits is to cut costs and increase efficiency. Cutting costs can be done by reducing expenses, such as salaries, benefits, and other operating costs. Increasing efficiency can be done by making changes to the way the company operates in order to make it more efficient. For example, a company could improve its supply chain management or reduce the amount of waste it produces.

Set goals and create a strategy.

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There are a few key things that you can do in order to increase your company’s profits. The first step is to set goals and create a strategy. You need to have a plan in place in order to achieve your goals, and you need to be sure that your goals are realistic and achievable. You should also make sure that your strategy is flexible so that you can adapt it as necessary.

Develop new marketing campaigns.

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Developing new marketing campaigns is one of the best ways to increase profits for a company. By creating new, innovative campaigns, a company can reach out to new customers and bring in more business. There are many different types of marketing campaigns that can be used to achieve this goal.

One type of campaign is called an integrated marketing campaign. An integrated marketing campaign involves using a variety of different marketing techniques to reach potential customers. This might include using TV commercials, online ads, and direct mailers all at the same time. This type of campaign can be very effective in reaching a large number of people.

Another type of marketing campaign that can be successful is a targeted campaign. A targeted campaign focuses on specific groups of people who are likely to be interested in the company’s products or services. For example, a company might target women who are pregnant or have young children if they sell baby products. Focusing on a specific group like this allows the company to tailor its advertising and messaging specifically for that group’s needs and interests.

Finally, companies should consider using guerrilla marketing tactics as part of their overall marketing strategy. Guerilla marketing is when companies use unusual or unexpected methods to promote their products or services. This might involve using creative advertising stunts or sponsoring events in unique locations. Guerrilla marketing can be very successful in getting attention from potential customers and helping the company stand out from its competitors.

Train employees on new procedures.

This includes making sure that everyone understands the goals of the new procedures and how their individual roles contribute to the overall goal. By ensuring that everyone is on the same page, companies can avoid confusion and miscommunication, which can lead to decreased productivity and profits.

Another way to increase profits is through employee training on how to improve their own productivity. Many companies offer training programs that teach employees time-saving techniques or how to better manage their workday. These types of training can help employees feel more confident in their abilities and lead to increased efficiency in the workplace. When employees are able to work more productively, it leads to increased profits for the company.

Overall, increasing profits is an important goal for any business. There are many ways to achieve this goal, and the most effective approach depends on the specific business.

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5 Recruitment Mistakes Your Business Must Avoid

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Every manager believes they are hiring the best candidate for a role but may later feel disappointed by a person’s attitude, behavior, or competencies. 

Also, it might feel frustrating if a new employee leaves the business for a reason that could have been spotted during the recruitment process.

Save your business time and money by learning about the following five recruitment mistakes to avoid.

  1. Failing to Promote Internally

The best candidate for a senior position or another role in the business might be under your nose. 

Hiring external candidates can not only drain morale, but it is also more expensive than promoting internally. 

Don’t bypass talented internal employees and consider your team’s competencies, ambitions, and work ethic. Avoid setting standards that few people can meet to widen the talent pool and increase your company’s likelihood.

If you’re unsure about your employees’ skillsets or question their abilities, your business could benefit from a talent management and performance management platform from thinqi.com.

It can not only help your business review your employees’ readiness for a specific role, but also nurture top talent and help a team reach its potential.

  1. A Prolonged Recruitment Process

A lengthy recruitment process could cause your business to miss out on talented candidates.

If the recruitment stages are drawn out, a skilled professional might lose interest in a position and pursue a career elsewhere. 

Remember, many candidates will apply for many roles in an industry, and they might not think twice about accepting another offer.

  1. An Inaccurate Job Description

An inaccurate job description will cause unsuitable internal or external candidates to apply for a position at the company. 

It will not only waste professionals’ time and get their hopes up but also slow down the recruitment process.

Make the experience much easier by writing an accurate job description. If in doubt, ask the head of a department to review the copy to ensure it checks every box. 

It could help you choose from many suitable candidates and avoid wasting time on the wrong applicants.

  1. Using the Same Recruitment Source

Don’t make the mistake of using the same recruitment source for all external hires, as it will limit your company’s talent pool. 

Grab the attention of many qualified candidates by using various recruitment platforms to encourage many job applications.

For instance, you could advertise a vacancy on:

  • Various employment agency websites
  • Local newspapers
  • Job boards
  • Your business website
  • Your company’s social media accounts

The more you advertise a vacancy, the more exceptional candidates you can interview for a role.

  1. Setting Unrealistic Standards

It makes sense you will want to hire an extraordinary candidate for a role. As a result, you might request that candidates have many degrees, niche computer skills, and a specific employment background and characteristics. 

However, if you do so, you might find few people applying for the role, as jobseekers might believe they cannot meet your company’s high (and unrealistic) standards. 

Avoid setting standards that few people can meet to widen the talent pool and increase your company’s likelihood of hiring a talented professional.

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How To Make Your Business More Socially Conscious?

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Business

As a business owner, you have the power to make a difference in the world. By making your business more socially conscious, you can help create a better future for all. And there are many ways to make your business more socially conscious. Below are just a few ideas to get you started.

Create a diverse policy statement and discuss inclusion in the workplace.

What does it mean to be inclusive in the workplace? To be inclusive in the workplace means to make an effort to understand and consider the diverse backgrounds, needs, and perspectives of all employees. This includes ensuring that everyone feels comfortable and welcome in the workplace, regardless of their race, ethnicity, gender identity or expression, sexual orientation, religion, age, or disability status. Inclusive workplaces are those that recognize and value the individual differences among employees. They strive to create an environment where everyone feels respected and valued, and has an opportunity to contribute their unique perspective. Inclusive workplaces also promote equality and diversity, which can help improve employee morale and productivity. Businesses can become more socially conscious and inclusive in the workplace by creating a diversity policy statement, training staff on how to be more aware of unconscious bias, setting an example, offering paid leave for employees with family care responsibilities, and promoting flexible work arrangements.

Choose sustainable packaging to reduce waste.

One aspect of being more socially conscious is increasing sustainability efforts. Many packaging materials are not biodegradable. This can lead to a lot of waste in landfills and other environmental problems. Choosing biodegradable packaging is a great way to be more socially conscious and reduce the amount of waste your company produces. There are a number of benefits to using biodegradable packaging. First, it helps reduce the amount of waste that ends up in landfills. Second, it helps reduce the amount of greenhouse gas emissions that are produced. And third, it helps conserve natural resources. Earthwise Packaging is a company that creates sustainable and biodegradable packaging made from plant materials. The company’s products include jars and other containers are carbon neutral and made from sugarcane instead of plastic. Earthwise Packaging is committed to sustainability and reducing the environmental impact of its products. All of the company’s products are certified bio-based by the USDA BioPreferred program and meet ASTM D6400 standards for compostability.

Advocate for social justice causes on behalf of your company.

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This can include things like working to end human trafficking, fighting for equal pay, or supporting refugees. There are many ways to get involved in these causes, and each business can find the one that best suits its needs and interests. Some companies choose to donate money or resources to social justice organizations. Others may choose to raise awareness about social justice issues among their employees or customers. And still others may choose to lobby for change at the government level. Whatever approach a company takes, it is important that they align their values with those of the social justice cause they are supporting.

Collaborate with other socially conscious businesses.

One way to make your business more socially conscious is to collaborate with other businesses that share your values. This can take many forms, such as a formal partnership or simply working together on specific projects. By collaborating with like-minded businesses, you can pool your resources and expertise to create a bigger impact. You can also use collaboration as a way to raise awareness about social issues. For example, you could team up with a charity to host an event or fundraiser. Or you could work with a local school to promote environmental education. Whatever the project, collaborating with other socially conscious businesses can help you make a positive difference in your community.

Educate employees about social responsibility.

This can include teaching them about the company’s values and how they can make a positive impact in their community. You can also provide resources such as online training modules, articles, or eBooks that discuss social responsibility topics. Employees who are aware of the company’s social responsibility goals will be more likely to act in accordance with them. For example, if the company aims to reduce its environmental impact, employees who are aware of this goal will be more likely to recycle and turn off lights when they leave their workspace. Educating employees about social responsibility can also help create a culture of philanthropy within your organization. Employees who feel connected to their workplace and its mission are more likely to want to give back to their community. This could involve volunteering at a local charity or donating money to a cause that is important to them.

There are multiple ways to make a business more socially conscious, and the most important part is that the business owner or leadership team is on board with the idea. Making a business more socially conscious can help it to be more successful in the long run by appealing to a wider customer base, creating a more positive image, and attracting top talent.

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