Home Loan Tips: Be Smart and Reduce Home Loan Installments; Use this trick to save money even in interest EMI

Many have no choice but to take out a home loan to buy a home; But home loan installments are also large and long-term. It consists of a combination of principal and interest. Generally, the amount of interest paid is equal to the principal amount. However, it is definitely possible to save. This is a way of saving.

प्रारंभीपासूनच पर्याय उपलब्ध

Pre-payment option is available only while taking home loan. It is important to know what is the right pre-payment period. According to investment advisors, banks charge interest initially. So pre-pay right from the start to lighten the EMI burden.

Voluntarily paying more than the regular monthly installments is called pre-payment. This additional amount is directly credited to the principal. Therefore, the principal decreases and the amount of interest decreases. Therefore, your loan installments are over quickly. This saves the borrower.

Suppose you have taken a loan of Rs 20 lakh for 20 years i.e. 240 months at an interest rate of 7.50%. So the situation will remain like this.

If you pay the installments for the entire term, you will get a monthly installment of Rs.16,112. You have to pay a total of Rs.38,66,847. Interest on it will be Rs. 18,66,847.

Let's say if you make a pre-payment of Rs 1 thousand per month along with a monthly installment of Rs 16,112, you will save Rs 2.70 lakh. 29 monthly installments will be reduced from 240 monthly installments.

Home loan interest costs a lot of money. Interest is highest in the first 5 years. Regular repayment of the loan reduces as follows. First 5 years 7.7%, next 5 years 19.2%, third 5 years 36.4%, fourth 5 years 69%, last 5 years full loan