Are you a home loan customer and want to pay off your home loan EMIs faster and before the scheduled tenor?

If yes, you do not need to scratch your head. It is because it is possible to do that following a few prudent ways.

Read on and learn more!

1. Pay a higher down payment

If you can make a higher down payment of 25% or more, your borrowable amount will significantly reduce. Once that reduces, your interest charges will go down – so will be your home loan EMI.

2. Make part prepayments

Whenever you receive any bonus or a Salary hike, you should use the amount to make part prepayments. This will bring down your total loan cost and help you pay the lower home loan EMIs.

3. Go for a short tenor

A smaller tenor may increase your EMI amount but save on interest charges. In turn, it will help you to pay off your housing loan faster than a longer tenor with lower EMIs.

4. Manage increased EMIs

If you have a second income, you can use the money to manage increased EMIs. Yes, even if you increase the home loan EMI by Rs.1,000-2,000, it will help you repay the loan years earlier.

5. Move to a lender charging a lower home loan interest rate

Lenders have reduced their home loan interest rates during the COVID-19 time. You can make the most of it by going for a bank offering lower interest charges. You can do that via the home loan balance transfer facility. You can also enjoy a large top up loan amount to manage other expenses without restrictions at a lower rate. Both new and old lenders will charge an amount when you switch the loan account. And you should be aware of the same earlier.

If you factor into these five steps, then you would be able to repay your home loan EMIs much faster.