Home loan will be free of EMI ahead of time! Take these methods

Every common Indian dreams that he has his own home – where he can live peacefully with his family. But in today’s era, when property prices touch, it was not easy to realize this dream. Especially in Metro cities, even a simple apartment has become millions of rupees. In such a situation, most people buy homes by taking loans off the bank. Home loan is a great relief, but this relief sometimes becomes a long -term economic burden. Because to repay the loan, EMI (equipped monthly installation) must be filled each month, which engulfs a large part of your salary. In this article we will tell you how to reduce the duration of your home loan and become free from this financial burden. Home loan: If you make a convenient but heavy decision, you have taken a £ 50 Lakh home loan, which is 25 years old, and the interest rate is 8.5% per annum. In this situation, your monthly EMI is made around £ 40,000. This amount is enough for many families, because apart from this, they must meet children’s education, medical expenses, household expenses and other needs. In such a situation, the question arises – can this heavy EMI get rid of quickly? The answer is yes. With some smart and practical methods, not only can you quickly repay your loan, but you can also save a large amount of interest on interest. 1.. Enter an extra EMI each year, if you fill an extra EMI each year, it can greatly reduce your loan. For example: If you fill an extra EMI of £ 40,000 each year, your 25-year-old home loan life can be reduced by 4-5 years. It also saves millions of rupees in interest. This method is specially beneficial for those who find bonus or tax refunds each year, or whose revenue is increasing a year after year. 2.. Increase EMI every year. For example: You started with £ 40,000 EMI. Increase it each year by a rate of 7.5%. That is, the second year £ 43,000, then the third year £ 46,225 and ahead. Through this strategy you can complete the loan within 15-16 years, while your loan period was 25 years old. The main advantage of this is that as your income increases, you can use it in paying your loan and that there is a great saving on interest. 3.. Use saving (use your savings) If you can save something, you can prepare your loan from time to time. This will have two benefits: The main amount of the loan will fall quickly. A large part of the EMI that goes into interest will be reduced. However, before the prepayment has to see if your bank did not pay a fine. Nowadays, most home loans are at a floating rate and they have no prepayment costs. 4. Loan balance (loan balance transfer) If your bank charges a higher interest rate, and any other bank in the market is ready to give loans at low interest, you can transfer the loan. For example: You have taken a loan at 8.5%, but now a bank gives loans at 7.9%. In this situation, the transfer of the loan can reduce your EMI or reduce the loan. But keep in mind – also understand the processing fees associated with balance transfer and documentary formalities. 5. Make expenses for budget and control. The strategy to repay the loan quickly is only effective if your savings are good. This is necessary for this: Make a budget of one month. Limit non-essential expenses such as food, online shopping, brands. Use the remaining amount in prepayment each month. Small savings together can reduce the duration of your loan for several years. 6. Use bonus, tax refund or its income correctly. You get the annual bonus, festival bonus or tax refund directly in the prepayment of the loan. In addition, if you have a side income such as freelance, rental income, blog or return – then use it to repay the loan. 7. Take the help of a partner or family member, if both man and woman earn in the home, both can fill the loan EMI as a co-applicant. This: EMI’s burden can be lighter. The probability of prepayment is increasing. Tax benefit is also available for both. 8. Do not forget the tax benefits on the home loan, you will receive deductions under the Income Tax Act on the home loan, such as: In terms of section 80c: Tax exemption on the main amount to £ 1.5 lakh. Under section 24 (b): Tax exemption on interest up to £ 2 Lakh. Article 80EA (if applicable): Additional benefit of up to 1.5 lakhs. These tax benefits save your net income, which you can be paid in advance. 9. Pay more at the beginning of the loan. Most of EMI goes in interest in the early years of the loan, while the principal is declining in recent years. Therefore, by prepayment in the first 5-7 years of the loan, your interest can reduce interest. Conclusion: Make a home loan strategy as easy as it looks as easy as it looks, the more timely repayment of it requires a smart financial planning. By adopting the above methods, not only can you complete the loan quickly, but your dream home can live without stress. So if you are also upset about the heavy EMI of each month, the time is that it quickly gets rid of a smart plan. Because the house is not only of brick and stone, but also your hard work and dreams.