Home Loan Tips: If you have taken a home loan and are troubled by the burden of its EMI, then you can reduce its burden through smart strategies. Along with this, you can finish a 25-year loan in 10 years.
In today’s time, the dream of owning a house is one of the most expensive deals and for this people have to take a loan (Home Loan). But a large part of the salary is spent every month in paying its EMI. In such a situation, everyone wants that his loan gets over as soon as possible. For this, by adopting some easy tips, the cost of repaying the loan and its burden can be eliminated to a great extent. Let us know about three such tips in detail…
Loan of 50 lakhs and EMI of 40000
Now let’s assume that you have taken a home loan of 50 lakhs for 25 years. This loan has been given to you by the bank at an interest rate of 8.5 percent and according to this your monthly EMI (Home Loan EMI) is Rs 40,000. As in the initial years, the bank recovers more interest on your loan. This can be estimated from the fact that through an EMI of Rs 40000, you make a payment of Rs 4.80 lakh, but the principal amount of your loan is reduced by only Rs 60,000 and Rs 4.20 lakh is spent only on paying the interest.
First tip
If you want to finish this 25-year home loan in just 10 years, then you will have to make the payment with the right strategy. Its first tip is that you should pay one extra EMI every year, that is, make an extra payment of Rs 40,000 in addition to the monthly installment. The advantage of this will be that this money will not be reduced from your interest amount, but from the principal amount and due to this the tenure of the loan will also be reduced from 25 years to 20 years.
Second tip
Now let’s talk about the second tip, so let us tell you that you have to increase your EMI every year at the rate of 7.5% and the benefit of doing this will be that by doing this the tenure of your loan will be reduced from 25 years to just 12 years. Due to the reduction in the tenure of your loan, you will have to pay less amount for a shorter period of time and you can get out of the loan mess soon.
Third tip
Now let’s tell you about the third and most important tip, so this is a combination of both the tips mentioned above and this is also the strategy, by adopting which you can close your 25-year loan in 10 years. Actually, if you deposit an extra installment of Rs 40,000 every year and increase the EMI every year at the rate of 7.5%, then the tenure of your loan will be reduced to just 10 years.
