Home Loan Interest Saving: Home loans are usually for a very long tenure like 20 or 30 years with a home loan tenure. Paying off the loan for so many years in a row can become a headache and can also be very costly. Therefore, you should look for ways that can help you save big on home loan interest.
What is the mistake in taking loan
When you take a low EMI loan against a large home loan, their loan tenure becomes very long and you fall into the debt trap. Therefore, we should know about such measures so that we can save huge on home loan interest.
What is the thumb rule for taking home loan
If you take a home loan, then it should not be more than 35 percent of your monthly salary and for this you can understand by example that if someone has a salary of Rs 1 lakh, then it should not exceed Rs 35,000 in EMI. With the help of an EMI calculator, you can understand how much EMI you can pay easily.
How to save huge on home loan interest
It can be understood with an example that if you take a loan of Rs 40 lakh on the basis of 8% interest for 25 years and an EMI of Rs 30,000 is made, then the total interest that will have to be paid will become a total of Rs 52,61,795. If your principal amount is Rs 40 lakhs, then interest of Rs 52,61,795 is made on it, then the total payment becomes Rs 92,61,795. That is, you are paying more as interest than the loan you have taken. If this is seen by increasing the part of EMI and the loan tenure is 20 years, then the EMI will increase to Rs 33,458 per month but your total interest will also come down to Rs 40,29,835.
This means that if you increase the EMI amount a little, then your loan tenure will also be less and the total interest paid to the bank will also come down to Rs 40 lakhs, which you were paying earlier than Rs 52 lakhs. That is, you can directly save Rs 12 lakh on the interest of the home loan.
With the passage of time, the salary also increases and every year you also get some lump sum amount like annual bonus or any other method, then you can use it for loan prepayment and save huge on interest . This can also be understood with an example like-
Suppose your loan is of 20 years but you have got an additional amount of Rs 2 lakh through annual bonus or any other means, then you can make additional loan payment of Rs 2 lakh each in 24th month, 36th month and 48th month. Suppose after this time, you are getting an additional amount of Rs 3 lakh every year, then you are making an additional payment of Rs 3 lakh in the 108th month, then after the 120th month i.e. 10 years your outstanding amount is less than Rs 3 lakh Will sit You can repay it in full in the next year.
Now by putting this prepayment method in the EMI calculator, you will find that where you were earlier paying a home loan interest of Rs 40 lakh, now you are paying an interest of Rs 20,67,083 and it is on the full interest of Rs 10 lakh. savings. That is, the first saving of Rs 12 lakh and this second saving of Rs 10 lakh, you can directly Save up to Rs 32 lakh on your home loan interest can do.