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Ask any salaried person what they fear the most, and they\u2019ll say, \u2018losing my job.\u2019 A global pandemic has shown us that layoffs are an inevitable vice of the corporate world in times of crisis.<\/p>\n\n\n\n
If you lose your job, it will come with many unforeseen challenges, especially if you are in the process of repaying a home loan<\/a>. Generally, home loans are taken in large amounts resulting in hefty EMIs. While these EMIs<\/a> are manageable with a steady job, they can prove to be a significant burden on you in the absence of one.<\/p>\n\n\n\n Worried that the numbers on your home loan EMI calculator<\/a> will increase beyond your reach? <\/p>\n\n\n\n 1. Utilise your moratorium period<\/strong><\/p>\n\n\n\n As per RBI guidelines, a lender can offer you two to three months of a moratorium, depending on your home loan eligibility<\/a> parameters like the credit score. It allows you to postpone your EMIs without affecting your credit history. In the meantime, you can search for a new job or arrange funds from other sources.<\/p>\n\n\n\n When the EMIs resume, the deferred payments are added to the outstanding loan amount<\/a>, and the interest is levied on the revised number. Calculate your new EMI values and total interest amount with a housing loan EMI calculator.<\/p>\n\n\n\n 2. Take advantage of your severance package<\/strong><\/p>\n\n\n\n In most companies, employers pay a severance fee to the employee in case of sudden layoffs. Generally, the severance amount is equal to the employee\u2019s salary for the notice period. To avoid penalty charges and additional interest, you can use this amount to pay EMIs for a few months.<\/p>\n\n\n\n 3. Use your Provident Fund to pay home loan EMIs<\/strong><\/p>\n\n\n\n In the wake of COVID-19, the government has allowed a non-refundable withdrawal from your PF accounts<\/a>. As a result, you can borrow three months of basic salary and dearness allowances (DA) or 75% of the PF balance, whichever is less. This amount can help you pay your EMIs until you find an alternate source of income.<\/p>\n\n\n\n 4. Take a loan against your investments to pay home loan EMIs<\/strong><\/p>\n\n\n\n Your fixed deposits, stocks, insurance policies<\/a>, and government bonds can play a crucial role in getting you out of this crisis. You can approach financial institutions to pledge these assets as collateral and avail of a loan against them. Although the interest rate against these securities will be higher than home loans, it can compensate for the penalty charges you have to pay in case of a default Remember that a loan against investments is also a financial commitment, so plan your repayment using a loan EMI calculator.<\/p>\n\n\n\n 5. Liquidate your assets<\/strong><\/p>\n\n\n\n Have you been investing in a financial instrument with the goal of accumulating a corpus? This might be the right time to use it as an emergency fund. Tap into your investments like fixed deposits, stocks, mutual funds, gold, etc., and liquidate them to pay off your loan. Yes, you may lose out on some profit. But on the positive side, you won\u2019t have to pay an EMI penalty. Plus, you\u2019ll be able to keep your credit score intact and not worry about your home loan eligibility in the future.<\/p>\n\n\n\n 6. Borrow from your friends and family<\/strong><\/p>\n\n\n\n Sometimes, asking your loved ones for financial help could be the best option. Borrowing money from people you know and trust can help reduce the stress of arranging money for your EMI payments. You won\u2019t have to worry about paying interest or penalties, and you can return the borrowed amount however you want.<\/p>\n\n\n\n Also, read – <\/strong>Home Loan for Pensioners: Everything You Need to Know<\/a><\/p>\n\n\n\n When you lose your job, it is essential to inform your lender about the job loss<\/strong> at the earliest. Being transparent helps you explore practical solutions, such as EMI restructuring<\/a>, repayment holidays, or short-term relief options that prevent missed payments from affecting your credit health. <\/p>\n\n\n\n Most lenders appreciate early communication because it helps them assess your situation and support you in keeping your home loan on track. Reaching out quickly also gives you time to review your finances and choose the most manageable repayment plan during the transition.<\/p>\n\n\n\n Also, read – <\/strong> What Is Credit Linked Subsidy Scheme? How Does It Work?<\/a><\/p>\n\n\n\n Creating a strong financial buffer is essential when you want to build an emergency fund to secure loan repayment<\/strong>. An emergency fund helps you stay prepared for unexpected situations, such as job loss or medical issues, while ensuring your home loan EMIs continue uninterrupted. Aim to save at least six months of expenses, including your EMI, so that you can manage repayments comfortably during challenging periods. <\/p>\n\n\n\n This fund also gives you greater confidence when speaking to your lender about temporary relief options if needed. With a well-planned reserve, you can protect your repayment journey and maintain long-term financial stability.<\/p>\n\n\n\n Also, read – <\/strong>How to Apply for a Government Housing Scheme?<\/strong><\/a><\/p>\n\n\n\n Home loan insurance can be a practical safeguard when you want to consider home loan insurance for job loss protection<\/strong>, especially if you are concerned about temporary income loss. This cover helps you manage EMIs during periods of unemployment, ensuring your repayments remain consistent even when your income is disrupted. <\/p>\n\n\n\n Many policies offer short-term support that prevents financial stress, helps you manage EMIs smoothly, and protects your credit profile. By choosing a suitable plan, you create a safety net that keeps your home loan secure while giving you valuable peace of mind.<\/p>\n\n\n\nRead these six simple ways to pay off your home loan EMIs even without a job<\/strong><\/h3>\n\n\n\n
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Inform Your Lender About Job Loss<\/strong><\/h2>\n\n\n\n
Build an Emergency Fund for Loan Repayment Security<\/strong><\/h2>\n\n\n\n
Consider Home Loan Insurance for Job Loss Protection<\/strong><\/h2>\n\n\n\n