Overwhelmed by the amount of the home loan? Know some emergency options for paying off EMI home loans
Everyone wants a home. A lot of savings are needed to be able to own a dream home. In addition to savings, people also take out home loans to prepare or buy their dream home.
However, if you are taking out loans, you should also note that you also have to pay the home loan IMEs during the life of the loan.
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The current pandemic situation has financially affected people all over the world. Several people have lost their jobs, businesses have been closed, pay cuts, etc. All of this has increased the burden of loan repayments.
Here are some of the emergency options that one can use if he is having difficulty paying home loan IMEs, according to a report from india.com.
1. RBI Moratorium: A three-month moratorium has been announced by the Reserve Bank of India (RBI) during the ongoing Covid pandemic. In this context, borrowers were authorized by banks and other credit institutions to defer payment of the loan for three months.
2. Mutual funds: People who have mutual funds can also use it to pay off EMI home loans and maintain their credit rating. You can check whether the value of the stock is rising or not. If it is high, you can get it for cash by exchanging it.
3. PF loan: Taking a loan from the Caisse de PrÃ©voyance des SalariÃ©s (EPF) is also one of the options that can be opted for the repayment of IME mortgage loan. People may note that up to 75 percent of provident fund (PF) savings can be used as a loan.
4. Use the company’s severance pay: When a company fires employees, it pays them severance pay equal to the salary for the notice period. Those who have lost their jobs and have an EMI home loan to pay can use this fund for the same.
5. Liquidate savings, fixed deposits: Saving is one of the most important things one does as soon as one starts to make money. Part of the savings and term deposits can also be used to pay off the EMI home loan.