How To Stay On Top Of Plot Purchase Loan EMIs?

Whether it is a housing loan, car loan or land loan, most borrowers need a strategy to stay ahead of their EMIs. If you already have a debt, it gets even tougher. However, it is possible to turn this situation in your favour and keep land loan EMIs smooth and easy. Here are three different ways for borrowers in different stages of repayment.

For new borrowers:

If you have just started making repayments, this is easiest time to get on top of your plot loan EMIs for three reasons. Firstly, you haven’t made any other financial commitments or haven’t gathered additional debt. Therefore, you can use this time advantageously. Secondly, you have sufficient time to create a land loan repayment strategy and avoid any future complications easily. Thirdly, you haven’t set any of your repayments in stone. This financial flexibility is vital for creating repayment strategy.

Therefore, when you have just started paying plot loan EMIs, set aside additional funds from your monthly income. You must gather an amount that is equivalent to 5 to 6 month’s EMI. Then, put these funds into fixed deposit or similar form of investment that you can liquidate easily for any emergency. This will allow you to repay your EMI even when you are in a financial trouble.

For borrowers in middle of repayments:

For most borrowers, the financial trouble is the unannounced threat without any warning. Such borrowers do not have the time or funds to utilize aforementioned strategy for land purchase loan repayments. If you cannot meet your monthly EMI for land loan easily and you do not have saved-up funds, you can use any of the following strategies to create additional funds immediately.

* Opt for overdraft on fixed deposits or a loan against assets.
* Consider premature withdrawal of your fixed deposit or sale of your asset.

If you understand the value of assets as investor without any emotional barriers, you will be able to sell or take a loan against it quickly and comfortably.

For borrowers in significant financial trouble:

Frankly, no borrower wants to be in this position. But, some borrowers do land in this kind of financial mess. The strongest recommendation for these borrowers is to not miss any land loan EMIs. Repayment delays can have huge repercussions. Additionally, if you miss your plot loan EMI, your lender may add this information in your credit score and worsen the financial situation for you. If you are in financial trouble, you should revisit your lender and ask for loan re-schedulement or restructure. Though, you will have to pay more interest, your monthly EMI will reduce considerably. That is a great support during trying times.

So make most of these repayment strategies based on your current financial situation.