It is becoming easier for the salaried people to get the home loans. The home loans drawn are usually a large amount and the EMIs may put a pressure on your monthly expenditure. It is not wise to change your lifestyle drastically to pay for the home loans. The home loan repayment tenure is long; about 20 to 25 years and if you make too many adjustments, it would become impossible to live a peaceful life. Or the chances are you end up ruining your credit score. Let us see the ways you can use to pay the home loan easily.
1. Provident Fund
The contingency fund can be withdrawn for the repayment of home loans with the principal amount plus the interest. Whether it is the public provident fund or the employee provident fund, you can use the money to repay which means the monthly expenditure can go as always. The Govt. also understands the pressure on the salaried people hence has relaxed the rules on the withdrawal of the PF money.
2. Fixed Deposit
When you break the FD, you have to pay some charges but it is the quickest way to get money when the home loan instalment is due. Usually, the interest on matured FD is 8% while if you draw the money prematurely, the interest is just 2 to 3%. You can liquidate the money online too but it is better to visit the bank and tell them your plan. If the FD is a joint holding, your and your partner need to approach the bank together to sign the necessary documents.
3. Mutual Funds
Mutual funds is a risky business but if you have done your research well, they can be used to repay your home loan. There are two types of MFs; tax saving and non-tax saving. From the tax saving funds, you can withdraw the money monthly and the same can be used to pay the EMIs, while the later facilitates drawing money anytime you need. The tax saving funds can be liquidated after three years of investment. As the mutual funds are subjected to the market risk, the gain is also dependent on the market conditions. When you make the request for redemption of the money, it takes three days for the credit of money. So make the requests accordingly to avoid delays.
Selling the jewellery of the ladies of the house is generally not considered good in India but they can be very useful at the time of need. One can always sell the gold to raise some money to pay the monthly instalments. While the price of the gold depends on the market, it is very easy to liquidate gold at the nick of the time.
There is one more method that can be used; Gold exchange traded funds. While the best plan is to make the adjustments from the monthly income and draw the loan only according to the financial capacity, you can use these methods to get some cash flowing quickly without disrupting your credit score. If you have any further questions, you can contact us.