Is Buffering On Home Loans Possible

Any emergency crisis can take the hope of many people. Everyone tries to live comfortably for which they take various measures to fight against the crisis. Earlier people used to purchase products without caring about the fact how to keep that product safe similarly in home loan people keep paying low interest rate on home loan but it is not important that the price of interest may remain the same.

If you take the current situation of the covid-19 pandemic many people suffered losses during these 3 months of March, April, and May where they were not having enough sources to pay the amount of debt so here they can have a choice of buffering on the home loan. It is like a piggy bank for you which will work for a purpose.

Ways to create home loan buffer

• Savings in the offset account:  With debt payment, if you can manage to deposit an extra amount in an extra offset account which is linked with a home loan then it will be like a piggy bank for you
• Flexible features in existing home loan:  If your loan providing lender supports you with buffering features then you can surely choose for it and if you need a high amount of loan then you can choose Axis Bank Home Loan who is already working for the betterment of society as well.
• Extra debt payments:  If you are doing extra payment with EMI then later on you will realize that this advance payment can save you during any emergency. E.g. The loan amount is 3000000 and the interest rate is 10% for 30 years means Rs. 26000 approx you have to pay then if you are doing extra payment with it then you are saving the money already.

Needs for home loan buffer

• On the purchase of a new house, there are many expenses to pay other than home loan EMIs.
• For the provision on not to delay the payment otherwise, there will be a possession
• Loss of income source
• To safeguard when the expenses are high during the festival
• If you meet with any emergency situation like an accident or any health-related illness.

To increase the buffering amount is not the only way but it is one of the most affordable ways to pay your debts during any emergency.

Buffering is like an investment too which doesn’t charge any interest and will work for you in paying the debt amount during the crisis. Many policies and changes are introduced in the market, some beneficial for the borrower and some not but covering the risk of loss or extra expense is a smart choice which is taken by many people.