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Tips to Make Prepayment of Home Loans a Lot Easier

by Finway Capital Empowering People Financially

Buying a home is the momentous occasion in any individual’s life. But, the home requires a lot of hard-earned money and proper financial planning from the very start of one’s career. Some can save a wholesome amount of money to pay the full amount of money in one go only, whereas many are there who find it tough to keep a lot and have to live in a rented house. Thanks to the variety of home loans in Delhi offered by banks and NBFCs that the people belonging to the latter category can now live in their own house. They can buy a home on credit and pay the amount in small chunks, that is, EMIs. A decade ago, the repayment of the loan was a tedious job, but it is now a trouble-free and straightforward process. However, prepayment of house construction loan is still a problem for many people, especially when huge is the loan amount.

It is a widely known myth that loan prepayment can actually hinder the cash flow of borrower and may even burn a big hole in his pocket. This eventually throws many borrowers or to-be borrowers into the dilemma of whether one should also think of paying a little more than a fixed EMI in order to keep the interest rate low for home loans in Delhi. Well, a large number of certified loan experts have debunked this myth and proved that a wise approach and better planning could make the prepayment of loans easier and more straightforward.  For instance, incentives and bonuses can be used to prepay one or two installments without losing any part from the monthly salary. Even the statistics have now suggested that nearly 65% of home loans having the tenure of 20 or 25 years can be repaid in as less than nine years.

But, how to prepay low-interest home loans in Delhi with ease? Well, here we have enumerated some of the best-recommended ways to pay back your home loan:

1.    Begin prepaying with a small amount. Steadily, keep on increasing this at a rate of 10%.

2.    Fix the amount that you would be paying every year without reducing EMIs. And, do stick to it.

3.    You can also increase your EMI over some time to cut the whole loan repayment tenure and save big on interest.

About Finway Capital Freshman   Empowering People Financially

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Created on Mar 22nd 2019 06:02. Viewed 101 times.

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