4 Ways to Prepay Your Home Loan

Owning a house is a big milestone in anyone’s life, no matter its size. Most people buy their homes with the help of a home loan, which is a smart decision. However, continuing the home loan until the end of its tenure may not be that smart a decision. Depending upon the interest rate, the total amount you might end up paying in the form of interest throughout tenure can be close to half the portion of the principal amount or even more.

That’s why it is better to start thinking of closing the home loan as soon as possible:

1. Choose High EMIs: At the time of availing the loan, your income was less than what it is now. With the increase in income, you can opt for higher EMI, which will reduce the overall tenure of the loan and help you repay it sooner.

2. Pre-payment Options: You can also pre-pay home loan when you get a lump sum amount or certain investment of yours. Most banks do not charge for a pre-paying home loan.

3. Balance Transfer: You can look for another lender who is providing a considerable lower rate of interest than your current lender. If you find one, then you can opt for a balance transfer of your home loan.

4. Disciplined Payment: Always make sure that you regularly pay your EMIs on time.

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