Buying a home is a huge financial task. That’s why many leading banks and NBFCs in India offer quick and hassle free home loan to their customers. By taking a home loan you can purchase a new house, purchase an under construction property, purchase land, reconstruct your house, renovate your house or purchase a commercial property. Home loan is a type of secured mortgage loan. The tenure for home loan ranges from 15-30 years and interest rate starts from 8.25%*. Banks and NBFCs offer fixed as well as floating interest rate in home loans.
As home loan is a secure mortgage loan, the property is kept as collateral to the loan lender until the loan is paid in full. If you fail to repay your home loan on time, the loan lender freezes the asset, sells it and recovers the loan amount. Thus paying your home loan EMIs on time is very important.
Here we have listed a few ways opting which you can easily pay back your home loan…
Pay your EMIs on time
Before you learn about how to pay back your home loan before time, you should know how to pay back your home loan on time. Pay the monthly decided EMIs on time. Keep reminders in your phone or link the EMI payment automatic with your bank account. If needed, create a separate bank account to pay home loan EMIs. But never miss even a single home loan EMI.
Make bulk payments
The most ideal way to pay back your home loan before time is by making bulk payments. You can make bulk payments throughout your tenure by using various funds you’ll receive.
You can save simultaneously while paying your home loan EMIs. You do not need to save the exact same amount as EMI. But even if you save half of it, it can make a huge difference. Let’s say, you home loan EMI is Rs. 20,000 per month. While paying your EMI you simultaneously save Rs. 10,000 every month. At the end of the year you use the saved Rs. 1,20,000 plus the interest gained on the amount to bulk pay your home loan.
You can also use your bonuses, increment or funds you will gain from long term investments to make bulk payments. This way you bring down your tenure and save on additional interest rate payment.
Now that you know how easy it is to pay back your home loan, apply for a best home loan