Financial Hardship? Shift to a Lower Interest rate Home Loan
Home loan is a lifelong commitment for most of the folks. This means a few months of job loss or a sudden health expense could put your loan repayment in jeopardy. Especially, for someone with a loan tenure of 10 years and above, a sudden job loss could just be the beginning of a financial crisis as the loan EMI would have been a substantial part of his monthly earnings. However, you can offset
some of the problems by transferring the loan to another lender or by restructuring your monthly EMI.
Re-finance Your Home Loan:
Re-financing your home loan from a new lender could work in your favor even if you are in a good financial situation. You not only get the benefit of lower interest rates on home loan but you can use the savings for other profitable investments. In the long run, even a few hundred rupees every month in a long home loan tenure could end up saving you thousands of rupees. Sometimes a lower EMI or lower interest rate is all you need to help you continue to pay your home loan even in case of a financial constraint.
Speak to Your Lender
Every lender lends out a loan expecting the same to be repaid. So in all earnest if you explain your financial constraint in a genuine way and hopefully provide a work around as well to repay the loan, then most banks would surely help you by arranging for lower interest rates instead of letting you go to another borrower.
Show Your Financial Constraints with Proof:
A lengthy sob story is what most of us hate to see on the films and real life is no exception to this. Sympathy is the last thing you can expect from any lender. So make sure you carry some documents pertaining to your financial problems like your medical bills, expenses incurred every month, proof of job loss. This will if not anything give you some time to think of an alternative to pay back the loan.
Be positive and ask for options:
Any lender would also agree that all disbursed loans are not repaid. Therefore, after explaining your genuine concerns make sure you ask the bank about the options you have. See if the bank is willing to give you a time frame to catch up on the delayed payments or accept lower payment for the time being.
.However, make sure you are diligent enough to request for the same in writing as well. This not only shows that you want a clear idea of what you are getting into but also shows that you are taking responsibility for the temporary arrangements and you are ready to compensate for the same once your situation gets better.
Your Past Payment History Could Help You:
If you have had a great past payment history, most banks will surely negotiate and arrange for some concessions while you get back on your feet. You can reiterate about your payment history and convince them on how sincerely you want to pay them back without any delays.
Make Things Happen:
Do not wait for bad times. You could have just missed a good loan offer last month prior to losing your job. Always be on the lookout for attractive deals. End of the day, banks and financial institutions earn their revenues by lending out loans.
Therefore, there is always intense competition in the market to offer better loans. Nowadays, switching loans is as easy getting a new loan and the charges are next to nil as well. So always be on the lookout for good deals.