Know How Flexi Hybrid Home Loan can Reduce your EMI

A Home Loan is your ticket to purchasing your own home when your savings alone aren’t sufficient to do so. Considering the fact that this loan is of a significant amount, you must select the loan with care. Choosing an option that offers you the amount that you want, with added conveniences and an affordable interest rate is key. This also includes having an EMI payment structure that makes repayment stress-free and affordable. Taking a Flexi Hybrid Home Loan is a one-stop solution that will help you do this. Here is how a flexi hybrid loan can reduce your EMIs on your Home Loan.

Enjoy Up to 4 Years as a Principal Holiday

It usually takes a few months to get used to making regular payments towards a Home Loan, as you have to manage other expenses as well. In the initial years, you might also have other home-related expenses such as those of construction, interior decoration and moving. To help you save your finances during this period, the loan offers a 4-year principal holiday. What this means is that for the first 4 years you only have to pay interest as EMI. Then, from the 5^th year onwards you will pay EMIs comprising both interest and principal.

Pay Interest Only on What You Use

Another excellent feature of the Flexi Hybrid Home Loan is that you only have to pay interest on the amount that you use from the total loan sanction. This immediately benefits your EMI. For example, if your total loan sanction is Rs.50 lakh, but you only use Rs.30 lakh, you will benefit from paying interest only on this amount.

Lenders like Bajaj Finserv offer you the option to take a Flexi Hybrid Home Loan instead of a term loan. You can enjoy these features along with benefits such as a competitive rate of interest, online approval and loan management, long tenor and quick disbursal. Also, when you take this loan, if you use only Rs.30 lakh out of Rs.50 lakh during the principal holiday period, the flexi term loan’s limit will still be Rs.50 lakh. When you choose this Bajaj Finserv loan offering, you can rest assured that your EMI payments will be far lower than if you were to take a term loan or a flexi term loan.

Reduce EMI by Lowering Principal:

In order to add more convenience to your loan, the Flexi Hybrid Home Loan provides you with the feature to part prepay the loan as many times as you want to. You can do so instantly by using the lender’s online customer portal. As you make payments towards the principal using this method, you will be able to reduce the value of subsequent EMIs significantly. Besides, you always have the option to withdraw funds from any part prepayments that you make.

Apart from making part prepayment easy, a Flexi Hybrid Home Loan makes this affordable too. It does this by not charging you extra fees on prepayment, no matter how many times you do so. Since you don’t have to pay a charge, you will be able to make a larger prepayment and therefore, reduce your EMIs even more.

Select a Tenor of Your Choice:

A Flexi Hybrid Home Loan offers these conveniences to you along with a long tenor of up to 240 months. If you want to lower your EMIs, make use of this feature. The longer tenor you choose, the lesser each EMI will cost you.

So, if paying low EMIs is an important criterion for you when you take a Home Loan, pick a Flexi Hybrid Home Loan over any other variant. Its many features ensure that your out-of-pocket expenditure on a monthly basis stays to a minimum.