There is an advantage in repaying the home loan early.

New Delhi:

How to dispose of Home loan early:

 Should the loan be taken or not?

Many times the loan is taken due to need.

Many times the loan is taken with the intention of saving tax.

In both cases, interest has to be paid to repay the loan.

The interest percentage of personal loan is high and it is even higher than taking a loan from a credit card and repaying it.

The repayment tenure also varies for all loans.

The loan that runs for the longest time is the home loan.

This loan is a secured loan for banks.

Because at the time of taking the loan, the ownership of the house becomes with the bank and the bank gets all the rights related to the house.

In case of failure to repay the loan, the bank exercises its rights. 

Well, many wealth creators clearly say that taking a home loan is no longer a good idea.

They believe that the amount of money a man buys a house on loan, he can live a better life by earning more interest on that.

Well, this is a difference of understanding.

For some a house is necessary, for some a rented house is sufficient. 

The question is that once a person is in debt, whatever may be the reason, the only option left is to repay it.

Now the sooner the loan is repaid, the better it is.

There is no difference of opinion of any expert in this matter.

The sooner the loan is taken off your head, the sooner the financial condition of the family becomes stable.

That is, with the improvement in the economic status and financial condition of the family, the confidence regarding money increases.

It is said because the loan scares most of the people after a time and it also seems to be a problem as to how soon the loan will end.

Sometimes it seems that you have got trapped in a maze. 

Experts in financial matters tell that there are some formulas to pay off the home loan easily.

Usually people take home loans for 20-21 years.

It is a big coincidence that loans of most people are for this time period.

It is a different matter that the person taking this time period can go back and forth a few years according to his convenience. 

For early home closure, most experts suggest that you pay some extra amount over and above your regular installment (EMI) to pre-empt the loan so that the principal amount is reduced as soon as possible.

Some people say that every year some installment should be paid more, that is, an amount equal to the amount of the installment should be filled in the loan account so that the principal amount of the loan can be reduced.  

It can be understood in this way... Some manipulation of the figure is possible but roughly the same formula is found.

This information is being given here only with the intention of making you understand.

It is good that you decide a better formula by taking opinion from an expert near you because your monthly income and savings play a very important role in deciding the formula.

Every family or individual has its own habit of spending and expenses. 

1. If you deposit 5% more of the loan balance every year, then you can finish the loan of 20 in 12 years.

The reason is that your income has increased in a few years from the time you take the loan.

But most people do not invest a part of this increased income in repaying the loan. 


2. If you deposit the amount of one more EMI in the account every year, then you can finish this 20 year loan in 17 years.


3. If any borrower increases his EMI by 5 percent after talking to the bank, then he will complete this 20 year loan in 13 years.


4. If you increase the EMI by 10 percent, then you finish the loan in 10 years.

By looking at this formula and knowing the borrower must have seen the way to repay the loan.

By the way, this formula is given only for understanding.

It depends on the interest rate and the tenure of the loan, how soon the loan will end. 


Featured Video Of The Day

Unique gift of faith for cancer patients coming to Mumbai for treatment