Home loans offer taxpayers dual advantages: homeownership and tax exemptions on both the principal and interest components.
However, these loans have a financial impact on your present and future. Experts advise early repayment to alleviate financial pressures.
Here are six simple ways to repay your home loan ahead of schedule.
1. Balance Transfer
Consider transferring your loan balance to expedite repayment.
Shifting the outstanding amount to a different bank offering a lower interest rate can reduce your EMI and accelerate the loan repayment process.
2. Timely EMI Payments
Late EMI payments can result in penalties and increased debt.
Opt for auto-debit to ensure prompt EMI deductions on your salary day, preventing late payment charges.
3. Avoid Additional Loans
Refrain from taking out additional loans unless you’ve settled your home loan. It’s prudent to minimize extra financial obligations while focusing on clearing your home loan.
4. Save and Prioritize Loan Repayment
Channel your funds towards extra home loan payments instead of unnecessary expenses.
Cutting down on lavish expenditures is an excellent approach to reduce your loan balance, leading to lower overall costs.
5. Prepayment
Boost your loan repayment progress by making lump sum prepayments. Such payments cover both the principal and interest, facilitating quicker clearance of the loan.
6. Shorter Loan Tenure
Opt for a shorter loan tenure, even if it results in higher EMIs.
Shorter durations mean lower overall interest costs, while sparing you from prolonged financial and mental stress.
Key Considerations
Fulfilling your dream of becoming a homeowner at the earliest is possible through regular payments, higher EMIs, and leveraging tax benefits.
These measures can help you get closer to repaying your home loan well in advance.
