There is only one easy way to finish the home loan quickly, that is the pre-payment of the loan.
When you are going to buy a house, you have a big problem that from where to take a home loan . Suppose that you have taken a home loan, then you are worried that how much interest will be charged on the home loan. Also Read: PF Account Holders: 1 lakh will be withdrawn from PF account without documents, this facility of EPFO starts
In today’s report, we are going to tell you how home loan EMI can be reduced so that you can get rid of the loan trap as soon as possible. At the same time, there is only one easy way to finish the home loan early, that is, pre-payment of the loan. Usually most of the people do not have a lump sum amount for prepayment. Also Read: Best Broadband Plans In India
What is your remedy in such a situation? Do you have to repay the home loan for 20 to 25 years? So it is not like that at all, you can settle your home loan quickly by just making regular small pre-payments. Also Read: Good News: This bill related to your bank FD passed in Parliament, know the answer to every question
EMI will be reduced by paying 10% more every month
To understand Pre-Payment in an easy way, it can be understood with two examples. In the first example, let’s say you have taken a home loan of Rs 25 lakh and the loan tenure is 20 years i.e. Also Read: Exchange 1 Rupee Old Note And Get lakhs Rupees, here’s how
240 months and assume that the interest rate of the bank on the home loan is 9 percent, then in such a situation your EMI 22,493 will come to Rs. Now suppose you pay 10% more in your EMI every month. Meaning that instead of Rs 22,493 you pay Rs 22,493 and Rs 2,249 i.e. a total of Rs 24,742. Also Read: Good News: Contract employees will now get bonus, the government has given green signal to this proposal
So by doing this, your loan will end in 190 months i.e. 15 years 10 months and 50 EMI will be reduced from your total EMI. In this way you have saved 50 EMI by paying 19 EMI extra. Also Read: Attetion! Traffic New Rule: If you drive a fast car on the road, challan will be deducted immediately and DL will be canceled
On the other hand, if you understand from the second example, by paying 20 percent more, you can reduce your loan even more. Your home loan will be completed in 159 months instead of 240 months by paying 20% more. In this way your 81 EMI will be saved. You will save 81 EMIs by paying 32 EMIs more. Also Read: SBI New Rule: Yono SBI only from the phone which has the mobile number registered with the bank, know here detail
What to do for down payment,
tell that banks give loans from 75 to 90 percent of the purchase amount of the house. The remaining amount is called down payment. Suppose you buy a house of Rs 40 lakh and the bank approves you a home loan of Rs 35 lakh on this house, then you will have to pay the remaining Rs 5 lakh yourself. Also Read: BSNL Great Plan: Get 36GB data and free calling for just Rs 97, you will get many benefits
Experts say that for down payment, one can borrow from family members or a friend for some time. Whereas, a loan can be taken against the Provident Fund (PF). Also, if other methods do not work out, then a loan can be taken from your employer for down payment.
