Why do you have to Buffer your Home Loan EMIs for Tough Months?


A home loan is the most valuable loan, including loan money in crores. It exceeds a loan term of 20 to 30 years, and includes a huge principal amount. It is important to plan finances in such a way that you do not face any sort of crisis while borrowing a home loan. There will be crises and emergencies coming when you are ongoing with your home loan debt. It is important to buffer your home loan during the tough times with good financial health. The key to managing the home loan EMI at the time of crisis is arranging a good amount of money to meet the needs. You must plan to have a contingency fund to settle the EMI for the months that you face a crisis. A home loan is a long-term loan and there must be some back-up plan working to ensure financial wellness when you apply for a home loan.

   Additional costs: It is important to have a fund that you can use for various expenses and costs that come along with a home. When you buy a home, you will have various associated costs. There will be some common expenses like brokerage, home loan EMI monthly, stamp duty, interiors, home registration, society maintenance bills and various standard charges included. When you buy a home, you should also arrange a source of funds to manage the related expenses as discussed above.

     Late possession: If the possession of your property gets delayed, you will have the added burden of rent plus your home loan EMIs. You need to pay your rent in addition to your home loan EMI if you don’t get possession immediately. However, the EMI for the home loan will start from the very next month of borrowing. So when you are planning, you must have at least 3 months of your EMI on hold, to make sure you can keep paying your EMI as well as rent.  For Business Loan click here business loan apply online.

     Lost income: If you lose your job, like what happened at the time of the Covid-19 pandemic, you will land up in trouble. This is why you should have at least 3 months of EMI in your contingency fund so that you can keep paying your EMI amidst all the crisis. When you have borrowed, it should be your responsibility to repay it no matter what conditions you face.

Wrapping up

Apply for a home loan with a low home loan interest rate. Always use a home loan calculator that you can easily get on the website of Clix Capital. It will enhance your borrowing experience and help you make the right decision.

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