Home loan: Increase EMI frequently or Prepayment

[umang92]

Hello everyone,

I like to discuss and know your thoughts about How can we finish a Home loan early as possible using following options.

1. Increase EMI regularly after salary increment say once a year by 5 or 10 %
2. Prepay your home loan outstanding every year with your bonuses say 1 lakh ir 2 lakh every year..

3. Use both of above options in an effective way to reduce the overall loan tenure and free from the Loan burden.

Let me know your thoughts with an example.

Thanks in advance

 

[ShavirB]

Honestly if the Loan is bothering you, you should use both methods to decrease the Loan Burden. My advice would be don't stretch yourself too much, try to prepay only what you're 100% comfortable with. If you put all your extra earnings into paying off your loan, you'll forget to live your life