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How To Manage Home Loans Interest Rate Hikes?

How To Manage Home Loans Interest Rate Hikes?

Home Loans interest rates are shooting up to the top. RBI has increased its important rates several time within last year. It results in all the banks increasing the home loans interest rates sharply and making the big hole on house owners budget. That too who bought the house within past five years would have been very tough situation to adjust the increase in the interest rates. In this article I will write few tips which will be useful for the house owners to tackle the situation and save the money. If you have any ideas, please post it in the comments section.

Prepay the Principal amount

vippiƤ edullisesti, it is the best idea to close the loan very soon. When you are paying the part of principal amount, there may be some restriction given by the banks like specific percentage of fees on the principal amount, maximum number of times in a year, etc. When you are taking the loan itself should be very clear on those terms.

Not Good Time to Buy House

It is not the good time for the new buyers. The home loans interest rates are very high and it looks there is more rate hikes from RBI in the near future. Which would result in more rate hikes from the banks. Apart from this, real estate scenario also worrying, the house prices are very high and be very careful on investing on the houses.

This advice would not be suitable for everyone, if you are the one who depends on the monthly salary and running your life with the budget, think twice before investing on houses.


In this article I have wrote down few points which might be very useful for the home loans buyers. However, they need more analysis on themselves to come into any conclusion. If you have any thoughts on this article, please post it in the comments section.