Home Loan is big responsibility for anyone and he / she always wants to repay their home loans soon as possible. Following tips could help you to prepay your well before time.
- Track Home Loan Interest Rates: Keep tracking of your rate of interest some time your bank or housing finance companies increase rate of interest with informing you. Higher the rate of interest longer the duration.
- Increase your EMI every year based on your annual income growth. if you increase your EMI by 5% every you could significantly reduce your loan term.
- Make lumsum payment if you received any amount as yearly bonus however do not compromise with liquidity. In case of problems getting money will be a big challenge. In case of need if you for personal loan it would be expensive. Be aware home loan is always a cheapest loan option in the market. Therefore before prepaying your home loan you must assess your cash flow & liquidity.
- Some banks Like SBI gives you option (SBI Max Home Loan) of home loan as a current account. You can park your surplus liquid amount in the Max Gain home loan account and save interest on the same. it also helps you maintain your liquidity and you can save interest as well.
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