Buying a home in Kolkata may seem simple enough, but arranging for the required funds will not be easy. This is because most people prefer to make such purchases with the help of a loan. Applying for a loan helps people to retain the cash and savings while allowing some tax benefits. However, as an inexperienced individual, you won’t make the most of the home loan facilities. Hence, it will be wise to hire a home loan advisor in Kolkata who will find these loopholes and tips that can help. It is necessary to seek professional help as it will help your finances further.

Understanding the Premise of EMIs and how they Work

After you have applied for a loan and it gets granted, you will get into the purview of EMIs or easy monthly installments. This is the method under which you will have to pay a certain amount of money every month. The amount you will pay will have a principal section, the interest being racked on the amount, the various taxes being applied on loan. It may not be easy to regularly pay the EMI, especially if you are not salaried and your monthly income fluctuates. In such a situation, a home loan advisor will be the person who can help you to manage everything.

The Facilities you will get to Enjoy and Manage your EMIs

The tips you will receive from the professional regarding the better management of your home loan EMIs are:

• In August 2020, RBI, or Reserve Bank of India, announced a moratorium on loans. At present, a loan moratorium can be applied for the longest period of 24 months on loan. As a borrower, you can use this opportunity to reduce your present liability, which means the EMI amount. A moratorium will mean temporary deferment of the repayment and not a cancellation. You need to remember this point before opting for the same.
• The loan balance transfer facility is also there, which will ensure that your EMI amount can be reduced when you are moving the loan from one bank to another. You will end up with a better deal and more time to repay the loan amount, which will be helpful, especially if you are going through some financial issues. Before choosing this option, you have to check the Marginal Cost of Funds based Lending Rate or MCLR of a potential bank.
• Under the Union Budget of 2020, the central government has increased the income tax benefits on a home loan. There are various facilities, including CLSS or the Credit Linked Subsidy Scheme of the Pradhan Mantri Awas Yojana, which will help you enjoy a considerable amount of tax benefits under the various sections of the Income Tax Act.
• If you face a cash crunch, it will be possible to apply for an overdraft on the existing home loan. Choosing this facility will allow you to deposit an amount of money above the pre-calculated EMI. The surplus resulted from this deposit will be treated as pre-payment of the loan, which will reduce the monthly EMI amount. You can withdraw this extra amount deposited as required. The interest of the outstanding loan will get adjusted automatically.
• Loan restructuring will be another feasible option available that can reduce your present burden of EMI. Yes, you will have to pay more in the long run, and the EMIs will continue longer. However, your current financial responsibility will be a little less.

Hiring a home loan advisor will inform you about all these details. However, as someone not having any idea or knowledge on the subject, you cannot handle the issue and enjoy the benefits. Hence, assistance is required. For further information and guidance, please get in touch with MRD Financial Advisory today.