Published on October 27th, 2020 | by Bibhuranjan0
Missed your home loan EMI Payment? Here are some quick fixes
Constructing or buying your very own home is a proud moment in your life. It is the project of a lifetime for many people which is accomplished through a lending hand in the form of a loan. A home loan is a very convenient option for somebody short on funds but not dreams. The process of repayment through EMIs helps in dispersing your financial load and makes the process of owning a home easier. But sometimes this process can get a bit troublesome due to many unforeseeable reasons. Do you find yourself in a situation where you have missed your EMI payment and don’t know how to get back on track?
Here are some quick fixes which can help you get out of this evil quicksand
Contact the lender and come to a solution
If you have a genuine reason for missing your home loan EMI payment such as a short-term difficulty, a medical condition, or unemployment, you can contact your lender to come up with a solution. If you have a good track record and are honest about your situation, the lender might offer some leeway and extend your loan term to make the repayments smaller and more manageable. The lender might lower your home loan interest rate with a few terms and conditions.
Disposing of assets
The incapability to not pay EMIs can be an ugly situation to be in. In case you have exhausted your income and savings, you can dispose of your other assets such as gold, car, electronics, and long-term investments like Public Provident Fund (PPF). Basically, you can shed off anything that may now seem like a luxury to you. This process of paying the EMIs through assets is called part payment.
Go for loan insurance
Loan insurance is insurance that can cover your EMIs for a short period of time. These insurances are available widely in the market. To be on the safe side, you should consider going for loan insurance while choosing a home loan.
During hard times such as loss of employment, lending institutions entertain requests made by customers for an EMI-free period. This can give you a 3-6 month waiver on EMI payments and lessen the financial burden so that you can plan your next step. Always use a home loan emi calculator to know about your monthly emi as per the loan amount and interest rate.
Most financial advisors will advise you to maintain an emergency fund to cover for any mishap or setback that can become the reason for you defaulting on your payments. In case you have any emergency fund available to cover for you in a financial crisis then you can make use of it and get back on course.
Friends and family
When all things go downhill, your last option is the people you are close to i.e. your friends and family. You can always approach them and ask for an informal loan (interest-free) to cover for your home loan EMI payments. You can pay them back later once your financial condition improves and things are good again.
Photo by Precondo CA on Unsplash