Business
Home Loan Repayment – Smart Tips & Loan Repayment Strategies
A 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.
A 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.
Business
Enhancing Team Productivity through Effective Feedback
In today’s competitive work environment, enhancing team productivity is vital for any organization’s success. Effective feedback, a cornerstone of performance management, can significantly improve productivity by providing employees with clear guidance, motivation, and support. It fosters an environment where team members feel valued, understand their contributions, and know how to align with team goals. In this article, we explore the impact of effective feedback on productivity, strategies to deliver it well, and ways to embed it into performance management systems.
How Feedback Improves Team Productivity
Feedback helps team members understand their strengths, identify improvement areas, and connect their work with team objectives. This clarity boosts productivity by encouraging employees to focus on tasks that truly matter and improving their skills along the way.
- Improving Clarity and Focus: When expectations are clear, employees have a better understanding of how to prioritize their tasks. Feedback clarifies these expectations, helping team members see the bigger picture and work toward common goals. This clarity not only improves individual performance but also aligns the entire team for better results.
- Building Confidence and Reducing Fear of Failure: Constructive feedback reinforces strengths and helps employees feel more confident in their roles. By framing feedback in a way that promotes growth, managers create a safe space for employees to take initiatives, make improvements, and focus on skill development. When employees feel empowered and unafraid of making mistakes, they are more likely to contribute to the team’s productivity.
- Increasing Accountability and Engagement: Regular feedback establishes a culture of accountability. Employees understand that their performance is observed and appreciated, motivating them to maintain or improve their efforts. It also increases engagement, as team members feel their work is valued and that their growth matters to the organization.
Characteristics of Effective Feedback
For feedback to truly enhance productivity, it must be structured and delivered effectively. Here are some qualities that make feedback productive:
- Specific and Actionable: Feedback should be clear, detailed, and actionable. General feedback like “good job” or “needs improvement” lacks guidance. Instead, feedback should include specific examples and suggestions on what to keep doing or change. For instance, saying, “Your presentation was engaging and well-organized, especially the visuals,” provides clear insight on strengths.
- Timely and Regular: Feedback should be given promptly, soon after the event or behavior it addresses. This ensures relevance and allows employees to make immediate improvements. Regular feedback sessions, whether through one-on-ones or check-ins, keep team members aligned and focused.
- Balanced and Constructive: Effective feedback includes a balance of positive reinforcement and constructive criticism. Acknowledging achievements and areas of strength builds confidence, while constructive criticism supports improvement without discouraging employees.
- Two-Way Communication: Feedback should be a dialogue, not a monologue. Encouraging employees to share their thoughts and ask questions helps create mutual understanding. When employees feel comfortable sharing their perspective, they are more open to feedback, fostering a culture of trust and respect.
Implementing Feedback in Performance Management
Integrating feedback into a performance management system provides structure and consistency, making it a continuous part of the team culture. Here’s how to embed feedback effectively within performance management:
- Set Clear Expectations: Clear expectations lay the groundwork for productive feedback. When team members know what is expected of them, feedback can be more targeted. Regular performance reviews, along with informal check-ins, provide an opportunity to reinforce these expectations and address any gaps.
- Create Continuous Feedback Loops: Annual reviews alone aren’t enough for modern work dynamics. Establishing continuous feedback loops—where feedback is given regularly—ensures that employees can adjust their actions promptly. This keeps the team on track toward their goals, fostering a culture of continuous improvement.
- Incorporate Peer-to-Peer Feedback: Feedback from peers can be just as valuable as feedback from managers. Peer feedback helps team members gain a well-rounded perspective, build camaraderie, and improve collaboration. It also distributes the responsibility of feedback, creating a supportive and communicative team culture that boosts overall productivity.
- Focus on Developmental Feedback: Feedback should not only address current performance but also encourage skill development. By focusing on growth areas that align with the employee’s career goals, managers can inspire improvement and commitment. Developmental feedback within performance management emphasizes growth, building a team that’s continually improving in skills that benefit the organization.
- Leverage Digital Tools for Real-Time Feedback: Performance management tools can help streamline the feedback process. Platforms that enable real-time feedback make it easier for managers and employees to track progress, set reminders for regular feedback, and maintain records of growth. With digital tools, feedback becomes an efficient and integral part of everyday team dynamics.
Conclusion
Effective feedback is a key driver of team productivity. By providing clarity, building confidence, and encouraging accountability, feedback empowers employees to perform at their best. When embedded within a performance management system, feedback transforms from occasional advice to a continuous improvement tool, fostering a positive, high-performance culture.
Organizations that prioritize effective feedback in their performance management strategies will see a more engaged, motivated, and productive workforce. In the end, when team members feel guided, valued, and aligned with organizational goals, they are more likely to go above and beyond, contributing to the success of the team and the organization as a whole.
Business
Home Office Haven: 6 Tips for Putting Together Your Perfect Home Office
Working from home has become increasingly common, and having a well-designed home office can make a big difference in your productivity and job satisfaction. Whether you’re converting a spare room or carving out a corner of your living space, here are seven tips to help you create the perfect home office.
1. Choose the Right Location
The first step in setting up your home office is finding the right spot. Look for a quiet area with minimal distractions and plenty of natural light to keep the good vibes going. Consider using a spare bedroom, a section of your living room, or even a converted closet if space is tight.
If you’re in the process of buying a new home, take the time to explore display homes to get ideas for potential office spaces. This can help you envision how different layouts might work for your needs.
2. Invest in a Good Chair and Desk
Since you’ll be spending a lot of time in your office, it’s crucial to have comfortable, ergonomic furniture. Choose a chair that supports your back and allows you to keep your feet flat on the floor.
Don’t be afraid to try out different options before buying. A standing desk or a treadmill desk might be worth considering if you want to reduce the amount of time you spend sitting.
3. Organize Your Space
A clutter-free workspace can help you focus and be more productive. Use shelves, drawers, and storage containers to keep your supplies organized and easily accessible.
Consider using a filing cabinet for important documents and a cord management system to keep cables tidy. Make sure to label everything clearly so you can find what you need quickly. Remember, a place for everything and everything in its place.
4. Light It Right
Good lighting is essential to reduce eye strain and maintain your energy levels throughout the day. Bring in natural light whenever possible. For darker days or evening work, use a combination of overhead lighting and task lighting, such as a desk lamp.
Also, avoid placing your computer screen directly in front of or behind a window to prevent glare. If you can’t avoid this, consider using curtains or blinds to control the light.
5. Create a Background for Video Calls
With video calls becoming a regular part of many jobs, it’s important to have a professional-looking background. Choose a wall in your office to serve as your video call backdrop.
Keep it simple and uncluttered, but consider adding a few tasteful decorations or a bookshelf to make it visually interesting. If you don’t have a suitable wall, you can use a room divider or hang a curtain to create a makeshift background.
6. Think About Your Tech Needs
Finally, make sure your office is set up to meet your technology needs. This might include:
- A second monitor if you often work with multiple windows open
- A good quality webcam and microphone for video calls
- A printer, if you frequently need hard copies of documents
Don’t forget about power needs – make sure you have enough outlets for all your devices, and consider using a surge protector to safeguard your equipment.
Create a Space That Works for You
Creating the perfect home office takes some thought and effort, but it’s worth it in the long run. A well-designed workspace can boost your productivity, reduce stress, and make working from home a more enjoyable experience.
Remember, your office should be tailored to your specific needs and work style, so feel free to adjust these tips to suit your situation.
Business
The Perfect Domain: What to Consider When Choosing Yours
The domain name may seem insignificant to business owners new to the online game. After all, it’s just a sequence of characters that contains your business name, right? How important could it be? The customers will figure it out in the end…
Well, you may be surprised to learn that it actually plays an integral role in your marketing strategy. For many customers, your web address is the first impression it has with your business, and therefore it must be easily-memorable and searchable.
Otherwise, they may give up on visiting your website before they’ve even really considered your awesome product offering!
With this in mind, here are some important considerations when choosing your web address:
- It should be simple
When it comes to domain name registration, nothing is more off-putting to a customer than a convoluted web address. They should be able to hear your web address from a friend or see it on a flyer before immediately searching it on their smartphone or, at the minimum, be able to remember it upon returning home.
Let’s say you run a technology repairs store called “Easy Technology Repairs”. Sure, you could include all of this in your web address and make it read something like “www.easytechnologyrepairs.com.au”. But it’s simply far too long and the customer will likely have a hard time remembering all that when it comes time to choose your service to fix their television.
Instead, you could choose something as simple as “www.easytech.com.au” and the customers will have little trouble remembering it when they jump on the train or get home to their laptops. A simple and easily-memorable web address makes it much easier for the customer to remember and this will help drive conversions.
- It should typically only contain letters
With the exception being if your actual business name actually has numbers in it. Let’s say you run a travelling tailor and dry cleaning company called “Tailors To You”. Sure, the web address “www.tailors2you.com.au” may look sleek, but it can also confuse the customer who has already seen your name spelled “Tailors To You”.
Therefore, when they go to type the web address “www.tailorstoyou.com.au” and find that it doesn’t come up with your website they will be immediately deterred and look for your product through a competitor. Therefore, you should only include numbers (and special characters for that matter) if they are actually included in your business name!
- It should pertain to your business
There is nothing wrong with including a special keyword in your web address if it actually pertains to your business. For example, you run a pool building company called “Sweet Summer” but don’t actually have the word “pools” in the business title.
One of the best things you can do here is include the keyword “pools” in your web address to make a web address like “www.sweetsummerpools.com” to ensure that both your clients and search engines like Google know what kind of content can be found on your website.
This will not only make it easier for prospects to remember your web address, but it also works well for Google, who absolutely loves knowing what kind of content can be found through a business’s web address. The search engine will have little trouble categorising your website and will therefore be likely to rank it higher in the search engine results pages!
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