4 Ways To Avoid Expensive Home Loans: The Reserve Bank has increased the repo rate three times in the last four months. Therefore, the loans of all banks have become expensive. Due to this, the EMI burden on the borrowers has increased significantly. Banks’ home loans rose above 1 percent during this period. In such a situation you may find your loan expensive. However, there is no reason to worry. There is a way to avoid this.

1) When you transfer your loan to a new bank, your EMI will automatically reduce. This will reduce your monthly EMI and save you some money. Remember to first apply for pre-term loan closure with the old bank to transfer the loan.

2) You must know that the home loan interest rate of every bank is not the same. In such a case you can transfer your loan to a bank with a lower home loan interest rate than your existing bank. But before that, find a bank that offers a lower rate than your current home loan interest rate. Then ask the old bank to transfer the loan to the new bank. There is a process of loan transfer. Your home loan will be transferred within a few days.

You May Also Read

Good News For Farmers From Modi Government

Union Bank Of India Online Saving Account Opening

Get Free Insurance Up To 5 Lakhs On ATM Card

If Account Holder Dies Steps To Follow

3) When you transfer your loan to a new bank, your EMI will automatically reduce. This will reduce your monthly EMI and save you some money. Remember to first apply for pre-term loan closure with the old bank to transfer the loan. Don’t forget to get the account statement and property documents from this bank. Then submit these documents to the new bank. After all these processes are completed the new bank will take the NOC from your old bank and on that basis, the loan will be closed. Banks may charge a processing fee of 1 percent for this process. EMI of the new bank will start after the balance loan check is issued by the new bank to the old bank.

4) The difference in the interest of both the banks should be at least 0.50 percent. If you can save 2 to 5 thousand rupees per month from this, then start a mutual fund SIP. If you invest this money in a mutual fund and get a 12 percent annual return, you can build a huge fund in 15 years.