Anyone who worries about losing their job and means of support may experience anxiety, especially if the layoff comes as a full and total surprise. It can be extremely difficult for someone to manage their existing debt and complete their ongoing financial responsibilities when they suddenly lose access to their usual source of income. A person’s monthly mortgage payments (EMIs) for a home loan are usually the largest component of their total debt obligations when compared to other financial commitments, including car or personal loans. This is particularly valid when contrasting the EMIs for a home loan and a car loan.

The following tips will assist you in managing your monthly 1 Crore Home Loan EMI payments if you have also lost your job.

Try requesting an extension of the loan’s tenor from the lender

Even though the interest rate on the mortgage is fairly low, losing your work would almost certainly make it hard for you to continue making the regular monthly mortgage payments because it would disrupt the flow of money into your property. If you didn’t have enough money in your emergency fund to cover loan repayments or EMIs, things could quickly get very difficult. Your best course of action is to officially ask your lender for an extension of the loan’s due date and to inform them in writing of your present financial circumstances.

Using a house loan EMI calculator, you may determine the reduced amount of the monthly installment payments that will result from this. The principal and interest payment, or EMI, would be less expensive if the loan were taken out for a longer length of time. When funds are few, this would be advantageous as it might stop the borrower from defaulting on the loan. A 1 Crore Home Loan EMI calculator can be used to confirm the anticipated monthly mortgage payment.

Try your utmost to pay off the loan if you expect to have money soon so that you can reduce the total interest paid to a more bearable amount. It’s critical to remember that extending the loan will raise the total interest paid during the loan’s term.

Utilise your rainy day fund if available

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

You may be able to avoid a precarious financial situation, such as an unexpected loss of employment, if you are diligent about maintaining an adequate emergency fund that is at least six times your necessary and ongoing expenses, including home loan EMIs paid by one of the most affordable lenders in the form of home loan interest rate. It is feasible that the cash in your emergency fund will be able to shield you from a precarious financial scenario if you have been careful to save a sizeable emergency fund. It would be best to utilise the money from your emergency fund to pay off your 1 Crore Home Loan EMI until you find a new job because even one day of late EMI payments could lower both your credit score and your credit report. This is due to the consequences of even a single day of late EMI payments. Your first priority should be to begin increasing your emergency fund as soon as you start getting regular income so that it can continue to offer enough security for both the difficulties you are currently facing and any that may arise in the future.

Requesting for a grace period

If you are having trouble reapying EMIs, there is an option to ask your bank/HFC to give a grace period. The lender may provide you a grace period, which is a temporary suspension of the obligation to make loan repayments, if the loss of your employment has left you in a difficult financial situation. The Borrower would not be required to make any payments towards the EMI during this time in order to give the Borrower time to look for new job and concentrate on their rehabilitation. When you find a new job and have enough money to cover your monthly costs, you can start paying your mortgage again. During the waiting period, the interest component can still be calculated, which could cause your EMI to go up. The home loan EMI calculator may be used by the lender to forecast how your 1 Crore Home Loan EMI will change after you begin making payments and after a specific period of time.

Consider selling off your investments with low yields.

Prioritise the purchase of fixed-income assets if you just lost your job and are having problems making your monthly installment (EMI) payments. These assets are not intended to help you reach any significant financial objectives. One of their first and most crucial actions ought to be this.

Though this isn’t always the case, they often offer lower long-term returns than other asset classes like equities. Additionally, the interest rates on these forms of investments are typically far lower than those used for mortgages.

By doing this, you can prevent situations when you are unable to pay large house loan EMI installments. More significantly, it can help you prevent the potential of going into default on your mortgage. Redeeming investments that produce a fixed income is one way to achieve this. This is due to the fact that you can use such redemptions to escape difficult circumstances if you are struggling to make your sizable EMI payments. Use 1 Crore Home Loan EMI calculator to determine how much of the loan’s outstanding balance will need to be repaid over the duration of the loan’s remaining term before selling low-yield assets. This suggests that you could prepare in advance by setting aside some of your investment portfolio to pay off the loan until your income resumes its normal level.

If at all feasible, consider switching lenders.

You may want to think about switching mortgage providers and moving your money to the new lender if you are having problems making your monthly instalment payments (EMIs) on your current mortgages. If they choose to, they can make this decision. It is a good idea to research a few potential lenders and assess them using a variety of factors, including the interest rates given, the maximum loan term, potential processing fees, etc., before selecting a specific lender.