If you have a home loan and have been paying an EMI for the last several years, you may have been worried that when a home loan is complete or how you can get rid of it. Your little understanding can not only give you freedom from it. Rather you can save millions of rupees. This is the right time, when you can do this work. Today, we will tell you which methods you can do, you can be free from home loan and also save millions of rupees.
How much interest you are giving: If you want to get rid of your home loan, first get home loan account statement and loan schedule from your bank. Many banks also offer online download facility. Check this statement and loan schedule thoroughly and see how much money you have to pay now. How much is the principal amount from this and how much is the interest. After this, you have to decide how you can save money.
Can save money like this: First of all, you have to see how long you have taken a loan. If you take home loan by thinking that the loan will be completed soon, for a short time, then you will be paying a lot of EMI. But this does not mean anything special to you. Suppose that you take a home loan of Rs 50 lakh at 8.5 percent interest rate for 30 years, then you have to pay an EMI of Rs 38,446, whereas if the deadline is 10 years then the amount of EMI will be Rs 61,993. In such a situation, you should understand that you have taken a home loan for 30 years, on which you will pay 38446 rupees EMI, but since you have capacity of paying Rs. 61 thousand then you pay part 21 thousand rupees every month on the pre-payment mode. It should reduce your principal amount. With this, where your loan will be settled in advance, your interest will remain the same.
How can save millions: If you have taken a loan for 30 years and prepay it in 10 years, then you can save approximately Rs 64 lakh. Know how
Take advantage of such: Even your loan is outdated and it is possible that the bank is reluctant to reschedule your EMI, you can transfer the balance of your home loan. Actually, the bank also offers attractive offers when you transfer the balance. While the current interest rate of home loan has also gone down significantly, you should take a home loan for a longer period at a new interest rate and after some time start paying part payment.
Keep this in mind: If you invest in bank FD, PPF, tax free bonds, savings etc. you get only 6 to 7.5 percent interest. Not only this, many of these income are those which can also be taxed, such as FD. But your home loan interest is 8.5%, so it is good that you have to pay part of the home loan or full payment instead of investing in the FD, tax-free bond. That is, if you repay your loan ahead of time, you can save more interest.
But do not make this mistake: If you are deciding to return home loan then it is not necessary that this decision is beneficial for you, so while repaying your home loan, you must also keep in mind that how old is it to bring your home. Actually, when taking back the money, banks take care of the interest amount that they will get back earlier. If you have taken loan for 20 years, then the interest of the first 10 to 12 years of EMI is more and the principal amount in the last year’s EMI is higher. So if you are thinking of refunding or part payment, but if the bank has already cut the interest earlier, then you will not get the benefit of returning home loan.