It might be difficult to repay a loan, particularly if you lose your work. An ongoing repayment schedule is necessary for a house loan, which is a long-term financial commitment. But, it might be challenging to pay your loan on time when you don’t have a job. It is essential to have a strategy in place in these circumstances so that you may continue making your loan repayments and prevent any negative financial outcomes. You also might have to know home loan interest rates and calculate home loan EMI before picking up the loan as it could help you in saving a few amounts of money. Here are a few options for you that might help you if you are going through the same.
Options to Pay Home Loan EMI in Case of Job Loss
You need not worry about paying your monthly installments even if you have lost your job. The following sections will help you sail through such a situation:
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Opt for an EMI break if available
Many banks and financial organizations offer EMI breaks to their customers. Depending on the lender’s policy, the borrower may skip a few EMIs under this program. Borrowers who have lost their employment and are experiencing short-term cash hardship may find some relief from this facility. Since the EMI vacation time is when the home loan interest rate does not accumulate, keep in mind that this will increase the overall amount of interest due throughout the loan. It is best to opt for even if you calculate home loan EMI before taking up the loan.
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Use FD (Fixed Deposit) and RD (Recurring Deposit) money
You can utilize the fund from your Fixed Deposits (FDs) or Recurrent Deposits (RDs) to pay off your home loan EMIs. But, there can be a fee if you break an FD before it matures. As a result, it’s best only to choose this choice if you have no other way to get money. You can calculate home loan EMI for the upcoming installments before paying the money so that you will have the plan to pay for the remaining installments.
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Withdraw from PF (Provident Fund)
You may be able to withdraw a portion of your Provident Fund (PF) balance to cover the EMIs of your house loan. But, taking money out of your PF account might affect your retirement savings in the long run. As a result, it’s best to only choose this choice if you have no other way to get money. Before making any withdrawals from your PF, be careful to verify with your employer or the PF provider as there may be additional terms and conditions that apply. Also, have a clear plan as you calculate home loan EMI schedule.
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Liquidate Assets (sell your assets)
You can sell whatever assets you have, including stocks, mutual funds, or gold, then calculate home loan EMI and pay your installments. But, keep in mind that if you sell your assets quickly, you can get less money than they are worth. As a result, it is wise to get advice from a financial expert before selling any assets.
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Take a Loan against an Insurance Policy
You can borrow money against a life insurance policy with a high surrender value and calculate home loan EMI to pay your monthly installments. However, be aware that compared to other loans, these ones could have higher interest rates.
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Take money from the Severance package
You could be eligible for a severance payout from your company if you lost your job. You can calculate home loan EMI until you find a new job. You can use this money to pay down your home loan’s EMI. However, be sure to budget your finances and utilize this money sensibly. Also, be sure to calculate home loan EMI, track your expenses, and set a limit on how much you spend.
Conclusion
In conclusion, losing your job can be difficult, especially when it comes to handling your funds. It is best to calculate home loan EMI at any instance. Use the possibilities given in this article wisely and be sure to plan on paying your installments properly.
