Facing Job Loss? Key Ways to Manage Your Home Loan EMIs

Outlook Money

Managing EMIs After Job Loss

Even if you lose your work, your home loan payments will still be due. While managing payments and maintaining financial stability can seem overwhelming, there are some ways you can take.

Use Your Emergency Fund

If you have an emergency fund, this is the right time to use it. It should ideally cover six to twelve months of expenses that helps you meet EMI obligations without stress.

Emergency Fund

Tap Into Savings

Not everyone maintains a separate emergency fund, but regular savings or short-term deposits can act as a buffer. Use them judiciously to ensure EMIs are paid on time.

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Request a Moratorium

You can put an end to your EMI payments for three to twelve months by implementing a moratorium. While interest still accrues, it avoids defaults and offers short-term respite.

Consider Loan Restructuring

Restructuring your loan can reduce EMIs or extend the repayment period. By consulting your bank with your situation, you can explore options to make repayments more manageable.

Rent Out Part of the Property

If you have extra space, renting even a single room can generate a steady income. Renting out part or all of a property can help cover a significant portion of your EMIs.

Seek Help from Family & Friends

Taking out a loan from close friends or family can help you manage your obligations without paying interest. To prevent misunderstandings and maintain relationships, always make sure that repayment terms are clear.

Mistakes to Avoid

Not keeping your lender informed, waiting only for the ideal job, or overspending PF and severance funds are key mistakes to avoid. Staying proactive during tough times helps maintain financial stability.

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