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4 Ways To Pay Off Your Home Loan Faster

  • Highlights

  • Make a large down payment

  • Make part-prepayments as and when you can

  • Select a short tenor to repay the loan quickly

  • Shop for a lender with low interest rates

If you have the financial means, consider beneficial ways to pay off your home loan faster. This will help you reduce your debt burden by leaps and bounds. Moreover, it will also help you steer clear of defaulting and will ensure that you don’t have to spend on penalties or late fees.
Take a look at the various ways in which you can pay off your home loan faster.

Make a down payment that exceeds 20%:

Making a down payment on your loan significantly reduces the principal amount. This means that your debt obligation is instantly lower. As a result, you spend less on interest and overall repayment. You can do this by paying a percentage of the loan in advance. For example, you can make a down payment of at least 20%–30%, depending on what your finances allow.

Make a part-prepayment:

Making a few part-prepayments during the home loan tenor will further reduce the principal that you owe and so, will reduce subsequent EMIs. Once your EMIs are lower, you can pay them on a timely basis and clear your loan in a shorter duration. If you seek easy prepayment options, opt for a Home Loan from Bajaj Finserv. Here you can gain from flexible prepayment options at no extra charge. Besides this, you can also enjoy a flexible tenor, nominal rate of interest and online application.

Select a short tenor:

Selecting a short tenor may cause you to pay higher EMIs, but this will allow you to clear your loan faster. Also, on the whole, the amount of interest you pay will be lower as compared to what you would pay if you choose a long tenor. Further, clearing your loan in a short duration allows you to borrow more debt again, if the need arises. This also boosts your credit score.

Additional Read: 4 Top Tips To Decrease Your Home Loan Interest

Home Loan EMI Calculator | Bajaj Finserv

Pick a lender with low interest rates:

Before you select a lender, make sure you study the market carefully. Make it a point to review all the lenders and compare their interest rates. Then, select the lender with lowest one. This ensures that your EMIs are affordable and that you can repay the loan quickly. In case you find that you are currently paying a high home loan interest, consider doing a home loan balance transfer to enjoy lower interest rates and other benefits.

Make it a point to implement each of these tips if you wish to clear your home loan fast without your finances taking a hit.

Additional Read: Steps to Apply for Home Loan Balance Transfer

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