Tips to Manage Bajaj Finserv Home Loan EMIs If You are Facing Layoff from Your Employer

Anyone who is concerned about losing their job and source of income may get anxious, particularly if the layoff is completely unexpected. It might be challenging to manage current financial responsibilities when one’s main source of income is abruptly lost. Home loan EMIs usually make up the largest amount of a person’s total debt obligations when compared to other financial obligations like auto or personal loans.

The following helpful advice may be able to help you manage your monthly EMIs if you’ve also lost your job.

requesting the lender to extend the loan’s duration 

Even though the interest rate on the mortgage is very low, losing your work would almost certainly make it difficult for you to continue making the normal monthly mortgage payments since it would disrupt the flow of money into your property. If you did not include these loan repayments or EMIs in your emergency fund, issues could arise very quickly. Your best course of action is to be honest with your lender about your current financial condition and request a longer Bajaj Finserv Home Loan repayment period. 

Utilize the tool of Bajaj Finserv Home Loan EMI Calculator to determine the reduced monthly instalment payments that will result from this. The principal and interest payment (EMI) would be less expensive if the loan were taken out for a longer period of time. By doing this, the borrower may be able to avoid loan default despite challenging financial circumstances. To confirm the EMI estimate, you may also utilize a home loan EMI calculator.

To reduce your overall interest payments, try to pay off the loan whenever you have any additional cash. It’s vital to keep in mind that extending the loan’s term will result in higher overall interest payments.

Use the money from your emergency fund.

Use your emergency funds as soon as you can if there are no other options and you used the Bajaj Finserv Home Loan EMI Calculator and discovered that you still have a long tenure and an outstanding amount to pay.

If you have taken care to keep an adequate emergency fund that is at least six times your necessary and ongoing expenses, including Bajaj Finserv Home Loan EMIs paid by one of the most affordable lenders in the form of home loan interest rate, you may be protected from a precarious financial situation, such as an unexpected loss of employment. Since even one day of late EMI payments can harm both your credit score and your credit report, the best course of action would be to utilize the money from your emergency fund to pay off your house loan EMIs until you find a new job. Rebuilding your emergency fund should be your primary priority once your regular income resumes so that it can continue to be enough for both present and future emergencies.You should carefully use calculators to understand how your EMI can alter if you ask your lender to extend the term of your loan, such as the one for a home loan.

asking for a grace period

If you are having problems making your monthly instalment payments (EMIs), you can ask your lender for a grace period. In the event that losing your job has put you in a perilous financial situation, the lender may provide you a grace period or temporarily suspend your Bajaj Finserv Home Loan payments. The borrower would not be required to make any EMI payments during this time so they may look for new work or pursue rehabilitation. You can resume paying your mortgage if you get a new job and have enough money for your daily needs. The Bajaj Finserv Home Loan EMI Calculator tool may be used by the lender to forecast how your EMI will change once you begin making payments and after some time has passed because the interest component may still be computed, which could raise your EMI.

Sell off your low-yielding investments in a continuing fashion.

Making the option to invest in fixed-income assets that are not intended to help them achieve any significant financial goals is one of the first and most crucial choices home loan borrowers can make when they are having trouble paying their EMIs as a result of a job loss.

They usually have lower long-term returns when compared to other asset classes like equities, though this isn’t always the case. Additionally, compared to mortgages, these investments could produce much smaller returns. 

By redeeming such fixed-income assets, you can avoid making large EMI payments on your mortgage and, more crucially, you can avoid potentially defaulting on your mortgage. This is due to the fact that you can use such redemptions to escape circumstances in which you are struggling to pay your high EMIs. Use the Bajaj Finserv Home Loan EMI Calculator to determine how much of the outstanding loan balance will be left over throughout the length of the loan’s remaining term before selling your low-yield investments to pay your EMIs. You can set aside a piece of your financial portfolio for the loan now that you’re organized. When your income reaches its previous amount, you can reimburse it.

Consider switching lenders if you can.

If you’re having problems making your monthly instalment payments (EMIs) on your present mortgages, think about switching lenders and transferring your funds to the new one. Start by utilizing the Bajaj Finserv Home Loan EMI Calculator to calculate the difference in EMI. Before choosing a lender, it is a good idea to compare a few candidates based on a variety of factors, including the interest rates given, the maximum Bajaj Finserv Home Loan term, any related processing fees, etc. 

Conclusion

Its a no-brainer that layoffs are among the most dreaded words one can hear anyday in life, especially in current scenarios where many big and small companies have been doing cost cutting amid recession fears, high inflation and many other factors after the big pandemic boom that the tech sector witnessed. And quite naturally, having a home loan EMI is among the biggest financial responsibilities to handle and be worried about when laid off, as your income inflow ceases. That is where the above mentioned steps can help you sail through.