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Loan Emi Payment Tension How To Prepay Rs 50 Lakh Home Loan Of 20 Years In 10 Years And Save Around Rs 31 Lakh In Interest

Loan EMI Payment Tension: The Reserve Bank (RBI) has started...

Loan EMI Payment Tension: The Reserve Bank (RBI) has started the process of increasing interest rates after 2 years to control inflation. In early May, the central bank increased the repo rate by 40 basis points. This has made all types of loans, including home loans, expensive. There have also been full indications that RBI will increase interest rates further in the coming days.

While choosing a bank or financial company for a home loan, customers look for more features than interest rates. They try to clear the loan as soon as possible through pre-payment. That’s why they get more information about this from the banks. We are going to tell here how to repay the maximum loan amount in less time. For this you can use these options.

How to Pre-Payment,

You can repay your home loan in less time through pre-payment. For this, customers are given this facility by banks and finance companies that they can pre-pay as much amount as they want in addition to EMI (monthly installment) during the loan tenure. This amount is deducted from the principal amount of the home loan i.e. your principal amount gets reduced. The advantage of this is that not only does the tenure of the loan get reduced but you can also save a huge amount in the form of interest.

Under this, you can pre-payment in two ways. Home loan customers can choose it according to their financial capacity. Either keep pre-payment in lump sum in between or keep on prepaying some amount at short intervals or every month. Whenever you get a large amount of money or there is an extra amount left from the expenses, then prepay immediately. If the bonus is received every year, then it can also be used for prepayment.

Take special care of these things

While making the prepayment, it should also be kept in mind whether you have taken the loan on floating rate or fixed rate. Banks levy a charge for prepayment on prepayment by customers availing fixed rate loans. If you choose the option of systematic part payment i.e. a little pre-payment every month, then it will be very easy for you. This will also not put much financial burden on you and you will also be able to save a considerable amount in future. According to an estimate, if you have taken a loan of 50 lakhs for 20 years and you repay it through prepayment in just 10 years, then in this way you will save 31 lakhs of interest.

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