The home loan is a unique funding option that lets you get the required amount to buy your own home.
However, the home loan is a long-term commitment. And it demands adequate planning from borrowers so that the repayment happens easily.
Before and after availing the home loan, borrowers resort to various ways to repay lower house loan EMI. They do that so that they are able to save enough to meet other monetary needs.
By going for a longer tenure, maintaining a robust cibil score and going for the home loan balance transfer, they lower the EMIs.
But many borrowers think if shifting their home loan to repo linked loan will reduce their housing loan EMIs or not. Read on and explore now!
If you have an ongoing home loan account, then you can get your housing loan linked to the repo rate. In this regard, the home loan interest rate may not reduce considerably. But the loan that is linked to the repo rate is considered more transparent in passing on the changes of the interest rate to the borrower. In earlier debts, the entire benefit of the lowering of the interest rate by the Reserve Bank of India (RBI) was not given to borrowers. And the portion of it was also pocketed by the financial institutes. If you want to go with this option, then you should enquire with your current lender only. This facility may be less cumbersome in terms of paperwork and logistics. You should ask your lender with a rate that they are offering to new applicants. Analyze it lower than your existing one and if it is the housing loan low interest rate in the end, then you should go for it.
Overall, if you want to shift your home loan to repo linked loan, it may help you reduce your housing loan EMIs.
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