Perfect emi for home loan

[akashthakre]

Hi Team,

I want to know what shall be the perfect home loan emi considering that there is no penalty on any repayments.
And my plan is to repay whole payment within 4 to 5 years.

Can you suggest the % wise emi ?

My plan is to keep emi less and keep repaying more money as it's penalty free and this way I'll be having money for

 

[ShavirB]

Sorry didn't understand your query

 

[jaybrg]

Dear Akash,

I did not get your query much... but as per my understanding I am providing you some solutions to avoid penalties or repayment of your HOME LOAN also you may save on your interest...

1. Before taking out a loan, use an EMI calculator to determine the monthly installment you can comfortably afford based on your income and expenses. This can help prevent overborrowing.

 

[jaybrg]

2. Carefully review your home loan agreement to understand the terms, interest rates, and any penalties for late payments or default. Make sure you are aware of the specifics of your loan.

3. Many lenders offer auto-debit options, where your monthly EMI is automatically deducted from your bank account. This helps ensure you never miss a payment and incur penalties.

4. Make sure you have enough funds in your account to cover the EMI on or before the due date.

 

[jaybrg]

5. If you have surplus funds, consider making partial prepayments on your loan. Reducing the outstanding principal amount can lower your interest burden and the overall cost of the loan.

6. If you anticipate financial difficulties that may affect your ability to make payments, it's advisable to inform your lender in advance. They may offer temporary relief options or repayment plans.

7. Regularly check your loan account to ensure that payments are being processed correctly. If you notice any discrepancies, address them with your lender promptly.

 

[jaybrg]

8. In case you face financial hardship, consider loan modification options such as extending the loan term, temporarily reducing EMIs, or restructuring the loan.

9. Periodically review the interest rates offered by different lenders. If you find a more attractive rate, consider refinancing your home loan to reduce interest costs.

 

[Akshat_Corporate Banker]

Hi Team,

I want to know what shall be the perfect home loan emi considering that there is no penalty on any repayments.
And my plan is to repay whole payment within 4 to 5 years.

Can you suggest the % wise emi ?

My plan is to keep emi less and keep repaying more money as it's penalty free and this way I'll be having money for

Hi Akash,

Would like to suggest you something that is practical and will benefit you in in two ways.

Would suggest you make a standard payment of lets suppose 1-1.5% and invest another 1% in different options such as index funds and some portion in small cap funds.

This will give you two benefits:
1. You will be able to save taxes as per your slab
2. You will make more money from investment and your homeloan will be remain almost interest free at the end of the tenor.

Plus you will have money laying with you that will make you mentally free that you can prepay anyday you feel to be debt free.

Happy you help for more clarity.

 

[Akshat_Corporate Banker]

Hi Akash,

Would like to suggest you something that is practical and will benefit you in in two ways.

Would suggest you make a standard payment of lets suppose 1-1.5% and invest another 1% in different options such as index funds and some portion in small cap funds.

This will give you two benefits:
1. You will be able to save taxes as per your slab
2. You will make more money from investment and your homeloan will be remain almost interest free at the end of the tenor.

Plus you will have money laying with you that will make you mentally free that you can prepay anyday you feel to be debt free.

Happy you help for more clarity.

Considering Home loan rate of approx 9.5 % and market returns of 15% in long run at conservative side.