For buying a house or constructing a building we take home loans from the banks. By taking home loans our dream of own house will become true. But the repayment of the loan takes a long period of time. often people prefer the longest possible tenure based on their income so that the monthly EMI is less. it makes it easy for them. But for longer the home loan tenure the interest on the loan amount is also high. So that we pay a large amount of interest on the loan amount. To clear home loans takes a long period. During the loan period, we face some financial difficulties. To overcome the situations some clear their loans faster. There are several ways to clear home loans faster.
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Reduce loan tenure
to get faster repayment of loans, you can choose a shorter loan tenure. That means deposit an additional amount to your home loan account along with EMIs. It results in costs and lower interest. It is better to prepay of loan whenever possible. An early prepayment of the principal amount leads to saving an interest payment. Prepayment means making part payments of our loan over and above EMIs. This saves interest on loans. Thus your income and savings are used for other financial goals like children’s education. Pre-closing means clearing off your loan with a single payment.
Banks will agree to give a low-interest rate, whereas, if possible, go for a shorter tenure. It will help us to close a home loan quickly.
Increase EMIs with the rise in income
home loans are the longest repayment tenure. At that period our income is expected to increase either by increasing salary amount or with an additional income source. Then you increase the EMI amount so that you can close the home loan early period.
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