Outlook Money
A home loan is a long-term commitment, often up to 30 years. EMIs can take up 25–40 per cent of your income, so even short-term financial hiccups can put repayments at risk.
Job-loss insurance can cover up to three EMIs if you lose your job unexpectedly. It offers a safety net to prevent default during difficult times.
Missing a single EMI isn’t usually a problem. Banks typically classify accounts as default only after three consecutive missed EMIs, so early negotiation can save your home.
If your current interest rate is high, transfer your loan to another bank with lower rates. This can reduce your EMI and ease your monthly burden.
Dip into your emergency savings rather than skip EMIs. Timely payments protect both your home and credit score.
Avoid high-interest personal loans. Borrowing from parents, siblings, or in-laws can provide interest-free support until you’re back on your feet.
Pause lifestyle spending like dining out, cabs, or shopping. Limit mobile and internet usage, and consider temporarily stopping insurance premiums if possible.
Build a strong emergency fund, avoid multiple loans, and consider credit protection plans. Planning ahead is the best way to prevent loan defaults.