I HAVE AN ACTIVE HOME LOAN WORTH RS 16 LAC ON MARCH 2021 TAKEN FOR CONSTRUCTION ( 2 YEARS ONLY INTEREST AFTER THAT EMI OF RS 12152 ALREADY PAID APPROX 5 LAC + AMOUNT TILL DATE FOR 24 YEARS .
KINDLY GUIDE TO REDUCE EMI BURDEN & CLOSE IT EARLIER .
I think both points are different may be contradictory. Try to understand if your priority is to reduce EMI burden only then probable way are somehow extended loan repay time or anyhow rate of interest reduce by bank. If you want to close it earlier than you have to Pay some amount directly in principal amount so that it close early or take more more burden of payment like atleast add one or more EMI in a financial year.
Consider Home Loan Balance Transfer - Shift your loan to another bank with a lower interest rate (some lenders offer as low as 8.35–8.75%).
Example: Shifting from 9.5% to 8.5% can save you lakhs in interest and reduce EMIs or tenure.
Start Making Part-Payments (Prepayments) - Any extra payment towards the principal directly reduces interest burden. Even ₹1–2 lakh every year can shave off several years and save lakhs in interest.
Opt for Shorter Tenure if Possible - Instead of lowering EMI, ask the bank to reduce loan tenure when you make part-payments. This ensures higher interest savings.
Use Annual Bonuses / Tax Refunds / FD Maturity - Use any lump sum inflow to make part-payments. Even one extra EMI per year as prepayment can reduce tenure by ~4–5 years.
Increase EMI if Income Rises - If your income increases, consider increasing EMI voluntarily by even ₹1,000–2,000. The impact compounds over the long term.
Avoid Extended Tenure Loans - Don’t stretch your loan to maintain low EMI – this increases interest outgo significantly.
I HAVE AN ACTIVE HOME LOAN WORTH RS 16 LAC ON MARCH 2021 TAKEN FOR CONSTRUCTION ( 2 YEARS ONLY INTEREST AFTER THAT EMI OF RS 12152 ALREADY PAID APPROX 5 LAC + AMOUNT TILL DATE FOR 24 YEARS .
KINDLY GUIDE TO REDUCE EMI BURDEN & CLOSE IT EARLIER .
1. Pay emi faster so interest would be charge a reduce outstanding principal amount
2. Request to bank not reduce tenure is change to default instead I reduce monthly emi
