What Are The Tips To Manage Your Home Loan EMIs Effectively?

Tips to Manage Home Loan EMIs

Home Loans Made Easy!

Home » Articles » Tips to Manage Home Loan EMIs

home loan emi

Planning to buy a new home? Thinking of applying for a Home loan? Before you buy a house or plot or renovate your existing home, you take a home loan. Today property prices are rising at an exceptional rate. This is where you need to take a home loan. Once your home loan is approved, you need to manage your monthly Home Loan EMI.

Here is how you can effectively manage your Loan EMI:

Careful Research

There are several options available in the market for home loans. It becomes difficult to select the best one when each seems to be better than the other. So it is better to do good research before choosing the right option. Compare the interest rates offered by different lenders and choose the one with the lowest rate based on loan eligibility.

Manage your Income

Lenders usually believe that a consistent source of income is proof that the borrower can repay the loan timely. Your bank will ask you to pay around 40% of your net income as EMI if you have no existing debts.

Prioritize and Schedule

You should try to avoid late payments on your home loan. A late penalty can add more liabilities to your debt. In case of any difficulty in payment, you should contact the lender immediately. They might offer you the best possible for your issues.

Don’t Just Pay, Pay More

Increasing the EMI amount by 5% every year is a very smart move to reduce the interest rate burden. You can match this increase to your salary increase or any other annual bonus. If you combine the two, i.e. pay one additional EMI per year while increasing your EMI amount by 5% each year, your interest burden will be significantly reduced. You can use an Home Loan EMI Calculator to easily calculate monthly EMIs.

Use EMI Calculator

A loan EMI calculator is an online tool that helps in measuring the home loan installments that you pay every month based on your monthly income, expenses, and other factors. A home loan calculator gives exact details of EMI payments and interest rates. Thus it makes it easier to select the best home loan scheme.

If Required, Change the Lender

In case you find that the home loan service is too expensive, you can look for another lender with a low rate of interest. The switch is usually seamless and includes a loan appraisal process, redoing your paperwork, and some nominal charge. 

Simple Ways to Reduce Your Home Loan EMI

Here are simple ways to reduce your home loan EMI:

Make frequent part payments of your existing Loan EMI

Making a partial payment is one of the best ways to lower your EMI. Partial payment will lower your EMI burden. Saving your extra income or bonuses can help you in this payment.

Home Loan Balance Transfer

The majority of lenders and financial institutions allow borrowers to transfer their loans to other banks or lenders. It is a fantastic feature that you should take advantage of. The process of comparing loan offers from various lenders does not end once you have received the loan amount. You must check other interest rates throughout the term and transfer your loan to that lender accordingly.

Extend Your Home Loan Tenure

Extending your home loan tenure will decrease your home loan expense. In case of a major financial crisis, extending home loan tenure is the best possible solution for a borrower.

Go for a Co-Applicant

Opting for a co-applicant e.g. your spouse or a family member can help you reduce your EMI.

Select the EMI date Carefully

Lenders allow you to select your EMI payment date when you avail of a home loan. You should be careful while choosing the EMI date because opting for the right date can help you reduce your home loan burden. If you receive your salary on the first day of every month then you should opt for the fourth or fifth day of the month to pay your EMI amount. You should always opt for the day closer to your salary day so that you have a sufficient amount to pay for the EMI.

Calculate Home Loan Eligibility


You must also master the art of financial management to successfully manage your loan. Take out only what you can comfortably repay, and make every effort to pay off your mortgage and other debts as soon as possible.

Share this article on WhatsApp

Also read:

Home Loan Calculator

Missed Home Loan EMI Payment?

How To Reduce Home Loan EMI?

Benefits of Home Loan EMI Calculator

Home Loan EMI Calculator: Know Your Home Loan EMI

Let us lend you helping hand in making your dream come true.

Apply for a Home Loan online
& get instant approval

Interest rates and other charges depend on the products. Please refer to the individual product pages for the rates.

Your home loan will be processed in 2 steps:

  1. You receive the approval of your home loan.
  2. You sign the loan agreement papers and complete other necessary documentation. The loan amount is thereafter paid directly to the builder by Home First Finance Company.

Loan decisions are made in less than a week. You will receive an SMS on your registered mobile number as soon as we make a decision.

HomeFirst does not charge any prepayment fees. This applies to both partial and full repayments. In fact, we have a special Auto-Prepay feature to facilitate this process for you.

HomeFirst offers loan tenures between 1 year to 25 years. If you opt for a longer tenure, you can get the advantage of a lower EMI each month.

HomeFirst can provide finance up to 90% of the property value. The balance has to be arranged by you from other sources. Please note: 90% financing is only available for loans amounting to less than Rs. 30 lakhs.

All co-owners of the property have to be co-applicants to the loan. A person who is not a co-owner can also become a co-applicant to the loan.

During the construction phase, HomeFirst will disburse funds to the builder on your behalf. These will be based on payment requests made by the builder as per the construction schedule.

HomeFirst will charge interest only on the amount disbursed as loan during the construction phase. In this period, interest is charged only on the disbursed loan amount. For example, if you have a sanctioned loan of Rs 10 lakhs, but the property is under construction and we have disbursed only Rs 4 lakhs, you will be charged interest only on 4 lakhs. These interest payments are referred to as pre-EMI interest payments.

EMI payments will start only after completion of the project and registration of the property.

All cheques to HomeFirst should be written out in favor of ‘Home First Finance Company India Limited’.

In the event of an unfortunate incident, home loan insurance will help you or your family pay off the home loan. This ensures that the burden does not suddenly fall upon family members at a bad time.

Send us your resume on careers@homefirstindia.com with the position you are applying for in the subject line.