Planning to Apply for a Home Loan Post-Covid? Here’s How You Can Make It Work Financially

The pandemic COVID-19 has taken the world by storm and has had a great impact on the economic condition of the world. The country is now looking for an economic reset with individuals looking to regain their financial stability. While various people are planning to get back to work, some wish to build their own home. However, with the adverse effects caused by the pandemic one may not have the required funds to build their own home. So, if you are planning for a home loan, here are some tips and tricks that will help in offloading the financial liability without much of a hassle:

Negotiate Home Loan Interest Rates

One way to manage a home loan during the COVID-19 crisis is to negotiate with the bank or any other lender for a reduced interest rate on the loan. If you have maintained a good banking relationship in the past, customer-oriented banks such as IDFC FIRST bankmay help you get a home loan at a lowered rate of interest.

Go for Floating Interest Rate

Financial institutions usually charge higher on fixed-rate home loans. While applying for the home loan, you can request a floating interest rate to take benefit of the falling interest rate and save from paying a higher EMI. A small convenience fee may be required to be paid for this purpose but this can help you a lot financially with your repayment.

EMI Moratorium

The EMIs might seem scary but they are merely a responsibility that one needs to consider in order to plan the way they handle money and plan their expenses. Banks offer a home loan EMI calculator that helps calculate the exact EMI that you need to pay for a particular loan amount. To ease up things, reputed banks such as IDFC FIRST bankare offering an EMI moratorium for the borrowers on a case to case basis. With this, they can get an exemption from EMI payment for some time without any negative impact on their credit score.

Liquidating Savings

You can liquidate your savings locked up in fixed deposits or other financial instruments to pay for the loan. However, having a good balance of savings is equally important. Also, since the interest rate on savings is being lowered by the government of India, it is better to weigh the pros and cons of liquidating the savings and picking the most lucrative option.


It is important to work out a plan that will help you manage your home loan before applying for it, especially during challenging times like this.  However, given the current situation, the enthusiasm of individuals and support from renowned banks has raised the possibility of applying for home loans for individuals with no major concerns. Also, be sure that you look for factors such as flexibility and affordability which are usually primary concerns of borrowers. But with customer-centric banks and financial institutions such as IDFC FIRST bank,availing a home loan can be quite comfortable despite the pandemic stress. You can also check out the IDFC FIRST bank home loan reviews by borrowers to read about their experience with the bank.

Moon Saxena 

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