Summary: Here are three great money-saving tips if you are considering a home loan to buy your dream home.

Buying the dream home is an important financial decision that people make only once, making it a huge milestone. To make the dream of owning a house come true, opting for a PNB housing loan is an option open to many.

However, home loans are often poorly understood and only viewed as a large expense. In reality, smart borrowers can save a large sum of money by actively managing their home loans. And the best part is that they don’t have to compromise on their dream home in the money-saving process. 

Money-Saving Tips for a Home Loan

Tip #1: Don’t Be Lured By Pre-EMI

Many lenders offer pre-EMIs options to borrowers to make them pay less than the said amount as a monthly EMI in the initial stage. The offer seems alluring, but you mustn’t forget that the money you are paying back remains unchanged. You will still pay the same amount even using the pre-EMI option.

Additionally, you could remain on pre-EMI for many years if the project gets stuck or is delayed. Such incidents will put you in trouble and benefit your lenders because the loan will increase, causing you to pay more interest.

Tip #2: Review Your Home Loan From Time to Time

Keep in mind that the interest you pay changes when the RBI adjusts its rates of policies. It’s crucial to monitor your bank’s subsequent actions. Your EMI might have been altered, or they might have altered the loan term while maintaining the same EMI.

Review your loan each quarter to understand your current situation and keep yourself updated on new rules and regulations. Here are three things to keep in check while you review your loan –

  • Change in EMI Amount
  • Change in Rate of Interest
  • Change in Loan Tenure

Actions to Take In Each Circumstance

The reason to keep an eye on your home loan is to ensure you save as much as possible in the long run. Here are some options you have if –

Your EMI Amount Changes

You might have lowered your household expenses after opting for a home loan to pay off your EMIs on time. Your salary will not stay the same forever – if you get a promotion or a bonus, use it efficiently. 

Pre-pay your loan when you can, and if you get the option to change your EMI amount, ask your lender to increase it.

Your Rate of Interest Changes

Lenders generally reduce the EMI amount if the rate of interest goes up. Ask your lender to keep the amount unchanged and shorten the tenure. This will save you from paying additional interest later on.

Your Loan Tenure Changes

Going for a longer tenure will result in a lower monthly EMI. This initially seems like a great deal, but in the long run, you will pay a large amount of interest by choosing this option. Always ask your lender to lower your tenure instead of lowering the EMI amount.

Tip #3: Don’t Hurriedly Close The Loan Out At The Very End

It may seem enticing to close your home loan quickly when you are getting close to the end so you can stop making payments each month. Home loans are big expenses that take years to pay off. And EMI math is more complicated than one might initially think. 

It can be challenging to calculate your exact interest payments. Many people don’t realize how much they can save by pre-paying or changing their EMI amount.

Be sure to use smart tools like the ones offered by PNB Housing Loan to assist you in crunching the numbers and coming to a wise decision. And check if a pre-payment penalty is associated with a home loan’s pre-payment. Discuss the pros and cons with an expert to make the right decision.


Getting approval for a home loan is not easy – prepare yourself by improving your credit score and the Fixed Obligations to Income Ratio (FOIR). Shop around for the best deals, talk to experts, and be sure to use a home loan eligibility calculator to check your eligibility. 

A home loan may be a significant commitment, but with the right precautions, you can ensure it doesn’t strain your finances.


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