How to close your home loan faster – Close Your Loan Early

There will be no one who will not take a loan in special circumstances of life. Sometimes it’s just a matter of changing the need for a home loan, a car loan or an education loan. But once you get a loan, the next major problem is how to repay it. Often EMI not repaid properly it can lead to very big problems and financial obligations. But here’s explain how to close a loan with a limited time.

Take a home loan for example. If you take Rs 5 lakh in 2010 year at 14 per cent interest for a period of 20 years, you will have to pay an EMI of about Rs 6200 a month. The approximate amount that you have to repay after 20 years is Rs 15 lakh.

In today’s scenario, different banks charge up to 7% interest on home loans. All you can do in this situation is to talk to the bank and reduce the interest on your new home loan from the old home loan. If not, change the home loan to the current interest rate you run at another bank. In that case, the EMI you have to pay next will be around Rs 4000.

However, if you have already paid the EMI and are paying the amount indiscriminately, that is, if you pay the EMI every month at Rs 6,200, you can repay the ten-year term in seven years. If you can pay more than this as EMI in the bank, you can close the loan as soon as possible. In other words, if you pay around Rs 10,000 and then repay the EMI, you can repay the remaining loan in just 4 years.

Otherwise, if you go ahead with the old loan, you will have to pay a very large amount. Also, no matter what the loan is, always pay the amount you owe to the lender as you do so that you can close the loan quickly and keep the balance as an investment. Before taking a loan, be sure to take out a loan only after making an accurate calculation of the amount to be repaid as EMI. Watch the video to know more.

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