Nowadays you get almost a hundred calls daily for home loans, banking services and so many other things that we may or may not be interested in. The telecommunication companies are anyway meeting their targets of making a specific number of calls on a daily basis, but in the end, we all despise them, not because they are doing their jobs, but they interrupt while we are doing ours. Despite blocking one number, there are many other ways through which they try to connect with us. Well, that’s either dedication to a great extent or outright harassment. This article is not meant to demean the job of banking or financial services, but it speaks in length about how you can pay your loans faster and indirectly get rid of these spam calls (at least you can hope for it).
A little prequel
Getting a home loan is easy. A hundred of these financial institutes and banks would second this claim. Even before you say a word, you receive a pre-approved loan SMS in your inbox which is now running out of space. The tougher part comes when you say “YES” to these messages and enter the labyrinth of a loan. Be it for a home or a vehicle or even a holiday. There are companies that even offer interest-free EMIs or No-Cost EMIs to lure more customers into their plans, but here’s the thing, a loan has to be repaid anyway. Here’s how you can do it faster.
Ensure the down payment is maximum
When you pay the down payment amount in a lump sum or greater amount, the principal amount is reduced. This helps you in paying the EMIs at lower interest rates.
Harp on the falling interest rates
While the repo rates are being cut by the Reserve Bank of India (RBI), the trend of interest rates on loans gets even downwards. In such cases, the buyer can either reduce the tenure or the EMI amount. Many experts advise on reducing the tenure and continuing with the same EMI which allows the buyer to increase their budget and clear the loan quickly and promptly.
Choose a lender offering lower interest rates
Any option that results in the buyer getting benefitted is something that’s preferred the most. That’s what banks and financial institutions have understood and offer competitive interest rates. The decision ends up in the buyer’s court to choose one who offers a lower interest rate.
Make the most of the tax benefits available
A loan, in any matter, is a pocket-draining affair. It is always advisable to choose a loan wisely and avail of maximum tax benefits out of it wherever applicable.
Also, make note of other charges and fees
When you choose a loan, it’s not just about paying the EMIs and interest amount. Other charges such as loan processing fees, late payment charges, other hidden charges, delayed repayments, etc. also need to be considered.
It’s better to part-payment
A buyer can reduce the loan amount to a huge extent by opting for part-payment. While some lenders levy certain charges on part-payment, the loan has a floating interest rate, making part-payment as and when possible, such as when you get a bonus or a gift, makes it easy to repay the loan faster.
At Pyramid Lifestyle, we offer our precise expertise not only in real estate but in educating the customers in every way possible. While our team of financial and banking experts ensures that you get the best deal, our projects spread across landmark locations in Pune ensure that you get the best experience in any property that you choose. If you wish to know more about who we are or what we do, visit www.pyramidlifestyle.com