If you have also taken a home loan and are thinking of paying EMI as soon as possible, then this news can be useful for you. Here are some tips that will help you pay your home loan EMIs instantly. Along with this, you will also get some benefits, but before that it is important to know why the home loan should be paid off soon.
1 crore will have to be given for a house of 50 lakhs
If you take a home loan and when you start paying the EMI, you have to repay it every month along with the interest rate. The higher the home loan EMI, the more you have to pay. For this reason it is advisable to pay off the home loan at the earliest.
For example, if you have taken a loan of Rs 50 lakh, then 7 percent interest will have to be paid on it and if you assume the tenure of 20 years, then you have to pay an interest of 43 lakhs. In this, the EMI of every month is more than 38 thousand rupees. That is, the total amount you have to pay is more than 93 lakhs. But if you pay off it sooner then the interest amount will be further reduced.
How to get rid of Home Loan (Home Loan Pay Off)
There are two ways to finish the home loan, one is you can increase the home loan EMI. On the other hand, if you make part payment little by little, then your home loan can be finished as soon as possible.
EMI hike
After increasing the EMI, you will get two benefits, one will get tax exemption under 80C. On the other hand, you will get interest exemption under section 24B. Apart from this, increasing the EMI also reduces the tenure of the loan to a great extent. You can increase EMI by 10% every year as per your budget. This will save you a lot of money.
part payment
You can also reduce the home loan by making part payment and pay it off at the earliest. With this, the interest on your loan will also be less applicable. Also, making part payment will also reduce the tenure.
both ways together
If you try both the methods together then you will get great benefit from it. That is, if you also deposit a lump sum amount from time to time and also increase the EMI of the loan, then your home loan will be pay off soon.