Individuals wishing to purchase their ideal house can take advantage of one of the most simple and safe financing choices available: housing loans. They have a longer repayment period, making it easier for borrowers to pay off the entire balance. However, this implies that loanees may be needed to pay a significant amount of interest over a long period of time, which can be financially exhausting. As a result, applicants should always look for ways to pay off their housing loan early. Here are some of the steps that they can use:
1. Pay a higher amount as EMI-
Borrowers can consider paying a bigger monthly payment than the actual EMI, which will shorten the term and reduce the total amount owed. It will allow you to swiftly close your loan account.
2. Make partial prepayments whenever possible-
Individuals should also make part prepayments on their housing loans online whenever possible in order to close them as quickly as possible. It will assist in reducing the outstanding loan balance as well as the overall interest due. Furthermore, prepayment of a portion of a loan shortens the repayment duration or lowers the EMI.
3. Opt for a shorter tenure-
Potential borrowers might also choose a shorter payback time to pay off the loan sooner and save money on interest. In this scenario, keep in mind that shortening the payback period would result in a higher EMI. In that scenario, customers can utilize an online housing loan EMI calculator to choose an appropriate loan term that would allow them to pay their monthly instalments without straining their budget.
Individuals with a good repayment history can use it as leverage to negotiate a shorter repayment duration with their lender. Borrowers can transfer their outstanding house loan to another financial institution or HFCs that offers better service conditions if their current lending institution refuses to negotiate through various housing loan schemes. These HFCs provide home loans at a low housing interest rate and for a larger period of time, therefore, a potential borrower should choose HFCs as a viable option when opting for a loan.
