How To Pay Home Loan EMIs If You Lose Your Job In 2025?

Home loan is one of the most significant & crucial financial commitments for every individual. Paying off home loans can consume years.

Some circumstances such as job loss can create challenging scenarios for monthly EMI payments as you will be facing trouble in managing your finances.

The thing that needs to be clear for us is that a home loan is a long-term financial commitment. And missing loan payments can create severe financial consequences. 

7 Ways For Payment Of Home Loan EMIs After Job Loss

Following are suggested solutions for you to do home loan EMI payments after job loss.

• Use Emergency Fund

The emergency fund is a different account you have set up to manage your unexpected expenses. Those expenses may be medical bills, job loss, car repairs, etc.

Having an emergency fund will help you in the payment of EMIs during a job loss. Your emergency fund should have at least six months of living expenses.

Such funds should not be invested in long-term instruments that may be mutual funds or fixed deposits. Because such money must be available in your hands easily during the need for it.

• Use Your Savings

Don’t have emergency funds, need not worry because your savings can help you cover your home loan EMI payments.

But the only thing you have to look up to is having enough savings to manage living expenses until you can find a new job.

Before using your savings, you need to be clear about the finances & expenses. And you will also need to minimize your other expenses like eating out, shopping, etc.

• Request For A Moratorium

The moratorium is the temporary suspension of your EMI payments. You will need to request your lender by seeking a moratorium by mentioning your job loss.

The moratorium duration can range from 3 months to a year. This depends on the lender.

While your moratorium period, you are not required to pay home loan EMIs. And over to that, your credit score will also not get affected.

During the COVID-19 pandemic, home loan borrowers have faced the issue of not earning due to the lockdown. So, they wrote a letter to the lenders as mentioned below. Similarly, you can write a letter stating about job loss, seeking a moratorium with necessary changes in it.

You have to be clear that the moratorium needs to be the last option. Because this will increase the overall cost of the loan. The interest accrued while the moratorium period will be summed upped in the outstanding loan amount. And you will need to pay the interest on this increased amount.

• Consider Loan Restructuring

Loan restructuring is a process where the terms & conditions of your home loan have been modified to make it more manageable for you. This is officially done by the lender.

If you lose your job then you can request your lender regarding the loan restructuring.

Under loan, restructuring is where the lender will reduce the home loan EMI amount, and your loan tenure will be increased, or both.

The things that you need to remember is the loan restructuring will come up with some additional costs like processing fees & may increase the overall cost of the loan. It is a must to evaluate the terms & conditions of the loan restructuring before accessing it.

If you haven’t applied for home loan but in future you want to, then check out How To Get A Home Loan Approved Instantly. It covers various significant aspects regarding early home loan approval that will be helpful for you.

• Rent Out Your Property

If you have a spare room or a second property, you can consider renting it out to generate additional income. More than 25000 happy sellers, pan Indian services, timely services, etc are some of the best qualities of the suggesting platform. 

Renting your property is possible now just by posting a property online at the most trusted Homebazaar – rent your property platform. And within a few minutes, you can complete the posting of your property on the platform, it’s that simple & user-friendly. 

The gained rental income can be used to cover your EMI payments until you find new employment.

However, renting out your property can come with additional costs such as maintenance and repair expenses. And you will have to comply with local laws and regulations regarding renting out your property.

It is important to note that renting out your property may not be a feasible option for everyone. If you are living in the property, you may not be comfortable sharing the space with a tenant. Additionally, if you have taken a loan against the property, you may not be allowed to rent it out.

• Seek Assistance From Family & Friends

If you are facing financial difficulties due to job loss, you can consider seeking assistance from family and friends. You can borrow money from them to cover your EMI payments until you find new employment.

However, it is essential to ensure that you have a repayment plan in place and that you can repay the borrowed amount on time. You should also consider the impact that borrowing money from family and friends may have on your relationship with them.

• Sell Assets

If you have assets such as gold or stocks, you can consider selling them to generate cash to cover your EMI payments until you find new employment. However, it is important to evaluate the value of the assets and ensure that selling them is a feasible option.

Selling assets should be considered as a last resource, as it may lead to a loss in value and may impact your long-term financial goals.

Things You Must Avoid

Losing a job is a tough scenario & you might also be under stress about managing all of the expenses including daily needs, home loan EMIs, etc.

In such a scenario avoid the following mistakes as

• Saying No To Jobs Not Providing A Salary Hike

It is customary for individuals to consider a new job only if it offers a higher salary than their previous job. However, given the uncertainty of the job market during the rise of the COVID-19 pandemic, it is unreasonable to reject job opportunities that offer the same pay as your previous employment. 

If you have outstanding debts, such as a home loan with significant monthly payments, it is advisable to accept any job offer that can assist you in repaying your debts on schedule.

Once the job market stabilizes, you can consider switching to a higher-paying job. In the meantime, you may still search for better-paying positions while working in a less-paying job to avoid defaulting on your debt, which can create complications in the future.

• Avoiding The Lender

To prevent any adverse consequences, it is advisable to communicate transparently with your lender if you have lost a job because of any reason. 

Failure to make your home loan EMI payments for an extended period may result in your loan being declared an NPA (Non-Performing Asset), and the lender imposing late payment penalties over future EMI payments. 

This can make it difficult & complicated to restore your EMI payments &CIBIL score. Therefore, it is crucial not to avoid reaching out to your lender to discuss any difficulties you may be experiencing with upcoming EMI payments. 

Instead, have an open dialogue with them to find a solution that can assist you in restoring your financial stability as early as possible.

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