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What if you default on your home loan EMIs?

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What if you default on your home loan EMIs?

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  1. Home Loan Interest Rates

  2. What if you default on your home loan EMIs?

  3. Retrenchment, an accident, a prolonged illness or business losses, can all lead to a situation where a borrower is unable to pay his home loan EMIs. Here are a borrower’s options in such a situation: • Plan your defense • Before you take a Home Loan Interest Rates , financial planners suggest you prepare a contingency fund amounting to at least six months’ expenses. • This will help you tide over a temporary cash crunch. You may also buy insurance against unemployment. • In India, such a policy is sold as a rider and not as a standalone policy and could pay 3-6 months’ EMI in case of a job loss.

  4. Temporary cash crunch • In such a case, break a fixed deposit or take a loan against a security. The borrower could also take an unsecured loan, such as a personal loan. • “Though high-cost, a person may exercise this option for the short-term if he is certain of getting cash flows from another source, in the near future,” explains Vishal Dhawan, chief financial planner, Plan Ahead Wealth Advisors. • If you can’t pay up If the borrower realizes that he will not be able to pay his EMIs, he should try to sell off the apartment himself.

  5. Credit score In case of a complete default or restructuring of the loan, the borrower’s credit score takes a big hit. • In the list of sins that you can commit on the loan side, defaulting on a secured loan is right at the top,” warns Ramamurthy. • The weightage given to a secured loan is high in calculating credit score.” • If the loan gets restructured, the impact on the credit score is slightly less. However, if there is a default, the impact is drastic. • Source: https://housing.com/news/what-if-you-default-on-your-home-loan/

  6. Click to know more on Home Loan Interest Rates : https://www.hdfc.com/housing-loans/home-loans/for-new-homes-salaried Thank You…

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