North India Statesman
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News India Live, Digital Desk: Financial Stability: Taking home of our dreams is the biggest dream of all of us. For this, we work hard for years, take responsibility for EMI. But sometimes there are unwanted troubles in life – the job goes away, there is loss in business, or any health emergency comes. In such a situation, the ‘dream of the house’ seems to be a burden, and it becomes difficult to fill the EMI of the home loan.
When such a situation comes, many people get nervous, bank calls start ignoring or try to hide the truth. But this is the biggest mistake! Remember, the bank is not an enemy; They also want you to repay your loan, and they have many ways to help you. Instead of panic, actively face the problem and talk to the bank openly.
So what to do when you are not able to fill the EMI of home loan? These are the 5 most effective things you should do immediately!
1. Talk to the bank ‘truth-cum’: first step towards solution,
As soon as you feel that you are going to be in difficulty in filling EMI, immediately contact your bank or lender. Explain your situation with them openly. Do not hesitate, because they would like to help you more than you run away. For the bank, it is better to keep in touch with you and solve the problem, instead that your loan becomes NPA (NPA-Non-Peerforming Asset).
2. Request Restructuring / RESCEDULING:
When you talk to the bank, they will have many options to lighten your EMI:
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Extended Loan Tenure: The bank can increase the duration of your loan. This will reduce your EMI amount of every month, which will make it easier to pay. Although the total interest may have to be paid more, it will give immediate relief.
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Reduce EMI amount: They can also consider temporarily reducing your EMI, if expected to improve your condition.
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Moratorium: Under certain circumstances (eg during epidemic), banks may allow you to pay EMI for a few months. However, this is temporary relief and you have to pay later.
3. Renting out / downsizing the house on lease or shortening:
If the financial pressure is very high and you feel that you will not be able to repay the loan for a long period, then some tough decisions may have to be taken.
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You can rent a portion of your house, which may bring some additional income.
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If possible, you can sell a small and low EMI house by selling your current house. This is a tough decision, but it can be a better option than insolvency.
4. Limit your needs (Cut Down EXPENSES):
This is a difficult time, evaluate your income and expenditure deeply. Cut all kinds of unnecessary expenses (eg entertain, eating out, expensive shopping). Every small money left will help you repay EMI. Also use a part of your savings to handle this situation.
5. Explore Additional Income:
Can any part-time work? Is there any old skill that can be earned by selling? Welcome every additional money in this difficult time. This will help you get out of the economic quagmire.
What not to do:
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Do not run away from the bank.
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Avoid borrowing for EMI (because it can trap you in a bigger trap of debt).
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Do not consider your home loan as the last option, try to handle it.
It is important to know that banks want to work with you. Communicate with them and find out the available options. This is a challenge, but by the right approach and action you can get out of this situation and save your ‘dream house’.
