Comments for Post #C27976

Saw a video from a finfluencer once that instead of paying 12 EMI’s in an year, pay 13 and it’ll help reduce the tenure as well as the interest paid

Do part payment Yearly 3-4 times That will deduct from principal This is the only way to reduce the principal

Use the interest of SIPs and FDs to reduce principle amounts and also when you get your variable n bonuses pay the principle as much as you can do that interest will reduce. Check with your bank for interests as some banks do fraud customers with interests and EMIs. FYI, don't break your assets and FDs to clear any loans.

37F, no kids, 1.15L take home, 72L investments - you are actually in a VERY strong position to close this quickly. Don't panic. Your current situation: Pending: 56.1L, Rate: 7.15%, Current EMI 50,700. At this EMI, your loan will end in ~15 years (181 months). You are paying ~34k interest now. To close faster, you have 2 options: OPTION 1: Just increase EMI (Don't touch investments) You have ~64k left after EMI (1.15L - 50.7k). No major expenses. - If you pay 58,142/month -> Loan closes in 12 YEARS - If you pay 65,571/month -> Loan closes in 10 YEARS - If you pay 90,000/month -> Loan closes in 6.5 YEARS - If you pay 1,00,000/month -> Loan closes in 5.7 YEARS So 10 years is very easy for you - just increase EMI by ~15k to 65.5k. OPTION 2: Smartest - Partial prepayment + Increased EMI Don't break all 72L. Keep 12L as emergency fund (12 months expenses). From remaining 60L, you have FDs. Break only FDs (not EPF/NPS/MF if they give >7.15% return). Even a 15L prepayment now will bring principal from 56.1L to 41.1L. Then: - 41.1L at 7.15% will close in 10 years with only 48k EMI (less than your current EMI!) - Or with your current 50.7k EMI, it will close in ~9 years. My suggestion for you: 1. Keep EPF/NPS as is (retirement + tax benefit). 2. Do 10-15L prepayment from FD/low-return investments NOW. 3. Increase EMI to 70k-75k (you can easily afford). 4. Every year, do 1-2L extra prepayment from bonus/increment. With this, you will close in 7-8 years without any stress and still have 45-50L investments left for security. You took loan in April 2024 at 8.4% and now 7.15% - ask bank to reduce spread also, or shift to repo-linked if not already. And check if EMI is same but tenure reduced internally. You can close in 10 years very comfortably. 5 years will be too tight (1.11L EMI needed). Go for 10 year target. Not a financial advisor, just sharing math.

Apart from paying emi if possible put additionally more than 1-2 lac per year in the loan account. Your emi mainly is the interest they are putting on loan & less of the principal amount. There is a saying if you pay every emi of a home loan then you'll repay it your whole life. The bank takes its interest first then the principal in home loan & the emi remains the same because principal is not reducing at the rate which it should be. Another option is to foreclose it as soon as possible if you want to come out of this loop. I'm telling this from my personal experience.

Try to make 2-3 (or more if possible) extra EMIs every year. It will directly reduce principal and your loan tenure will decrease drastically depending on the amounts you prepay.

Pay double EMIs every month .. your loan will be closed in less than 5 years

What is connecting your confession with 37 F and No Kids ?

Pay 1 extra emi in April and another in november You can reduce it to 12 years. Don’t pay in full, keep the liquidity.

If interest rate has been reduced...but you should have floting option to take the benifits of that.. You can parallelly invest that money in debt fund,bonds etc..donot close the loan..

Dont repay the loan. ROI is already low 7.15. Now invest your saving in stocks or gold. May be FD is also fine. You can earn interest which will nullify your interest you are paying

Do part payment in a principal amount every year and if it is possible to pay more 2-3 EMI in a year. This is the best way to reduce your loan tenures and close your loan in the next 5 - 10 years.

Check the overdraft facility from the bank you can put your extra money to that account it lowers your interest also its very easy to withdraw that money again to savings account Only thing the interest rate of overdraft is a little higher but its totally worth

Put an RD or invest which is = 25 or 50% of the EMI at the end of year pay this amount as part payment and you can use this for any unplanned urgencies as well.

Interest is quite low as when compared to other loans...7.16% is very less to be honest..I would like to advise. ->Invest the amount in any sort of investment where you can get atleast 12%. ->Every month invest in IPO where you see listing gain as per GMP.(1/2 chance that you may get alloted) ->You are neither saving as tax nor as capital gain so better to invest. If you still want to lower your loan Then pay every year a lump sum amount (There will probably be no foreclosure charge as interest rate is floating) So keep the emi same and pay a lump sum once in a year..You will see soon the tenure gets lower

I will give you a clue. 1. Pay 1,50,000 at more at the end of March so that it gets deducted from principal so your interest becomes lesser 2. Add a step up payment of 10% more every year to decrease the emi tenure to half. If you want to lesser it down further then add 20% emi on top of your emi. This will reduce the burden of a long term loan as well as you can get peace of mind without worrying about many hassles

If she can comfortably invest ₹40–50k/month, she can target closing the ₹56.1L loan in roughly 10–12 years while continuing investments. For 5 years, the required EMI would be around ₹1.1–1.2L/month, which isn’t practical on a ₹1.15L take-home. Given ₹72L investments, she should not liquidate everything just to become debt-free—keep an emergency fund and diversified investments, and use periodic lump-sum prepayments to shorten the tenure.

Try to put as much as possible money to your home loan account monthly, simply you can transfer, if capital gets reduced automatically tenure will be less keeping EMI same. Initially capital will be high, the amount you pay monthly in emi, mostly it goes to interest part not capital so you have to reduce your capital by putting extra money. And you can visit branch or RACPC office (in case of SBI) for clarification.

Rather than prepaying home loan, I would suggest to increase investments. You got home loan at 7.5% while moderate large cap funds will fetch 10-12% long term. So its money glitch if exploited with right strategy .

You are 34k as interest, so ask them what will be the foreclosure amount of 56 lakh, it will be around 50 lakh. So save 6 lakh and some other tricks are there too.

If you have loan in any NBFC quickly move it to SBI (best) or any other nationalised bank. Every 3 months once check with bank's for any interest reduction option ia available and awail by paying some processing fee. Like people mentioned do part payment and ensure you do it on 1st of the month to reduce the simple interest. Increase EMI payment, best is to close the EMI if you have other sources or savings

First check whats your tenure ? Did the bank applied less roi or not ? Keep increasijng your emi every year. Even 2k 3k matters in long run

If you are in proffit, Book small amount of your profit in stocks or gold and try to down the principal amount so that you EMI will be reduced Because you dont know when will stock or gold price will go down and erase the profit into loss. Yearly reducing atleast 3-4 lakhs of principal, yoh will close the entire loan in 6-8 years, as your intrest goes down that same EMI will down the principal amount quickly

If you get any bonuses, start doing part payment in the loan, and you are living in the house for which you have taken home loan? Or rented out the property?

I would suggest plz use your investment to pay off your loan and then start freshly. Loan is a trap.

U can use ai to calculate this

First of all confirm from the bank whether your loan is floating or fixed if it's fixed than there wouldn't be any change in interest rest and second thing is if you want to close the loan in 5 years you have to pay 1.15 lakhs per month if you wanna go for 10 years then pay 61000 per month if it is 12 months 61600..

Pledge the gold you have and pay back the amount for the loan. Gold loan interest is lesser. And you can withdraw the gold one by one.

Please don't close Home Loan instead of 12 emi make it plus one ie 13 it will definitely reduce the tenure. Housing loan will help you for I Tax purposes. Don't touch your savings. Gold price may soar by next month .

Pay the whole amount with your investment and then invest hard instead of paying emi

If you have cash during the month after all investments, make pre payments towards your loan, this will go directly to your principal, reduces the amortization.

we have ways to help to structure it. pls connect inbox

See from math's say continue with Normal EMI's and if tge interest drops keep the same EMI, this way over all few months of tenure will reduse... Any additional funds invest it in instruments where the returns are higher than your Home Loan interest rate. Else just pay one additional EMI amount every year (ensure this addition EMI amount is adjuested against reducing your principal outstanding) this will reduce your tenure by few years

Make. One EMI payment and reduce the tenure. Also, check with the financier what is the tenure reduction basis ROI from 8.50 to current rate.

Why are you posting financial stuff on social media...use Ai..

Make EMI -70k, Pay extra -1lakh every year so you can close this loan within 7 years also If you have savings around 20 lakhs then pay for home Loan it’s will reduce Interest around 30 lakhs then rs

Upskill and switch and increase your salary. Best to way to pay for loan or anything. Is increasing your income. And increasing your emi amount.

I just closed the housing loan wisely. The amount of money u pay in EMI can be invested somewhere and believe me in 4 years u can come out of the complete loan. Ping me and I shall guide you (u must have someone to support you )