Understanding Home Loan EMI
For many women, owning a home is not just a necessity but also an emotional asset. If you have taken a home loan in the past one or two years, you may have been affected by the increase in interest rates. In such a scenario, you may be looking to save a portion of your hard-earned income. You may be planning to invest or save this money, or you may be considering pre-paying your home loan to avoid the hefty EMIs.
Impact of Prepayment on Home Loan
When you take a home loan, the initial years have a larger portion of interest in the EMI. However, over time, this decreases gradually. Therefore, ideally, the sooner you make prepayments towards your loan, the better it is. By making early repayments, you directly reduce the principal amount of the home loan, which has a significant impact on the total interest cost. It is essential to consider various factors before taking the step of prepayment.
Financial Tips for Home Loan Repayment
Although there are tax benefits associated with home loans, some individuals may prefer to be debt-free. In such cases, making lump-sum or periodic prepayments can be beneficial. It is crucial to understand your financial goals and avoid using emergency funds for prepayment. Utilize instruments like surplus cash in savings accounts or FDs to earn lower interest compared to home loan rates and make prepayments to reduce the outstanding principal amount. Consult with your bank to explore options for increasing your EMI amount or making monthly prepayments to reduce the interest burden.
महिलाओं के लिए घर के लिए होम लोन लेना एक भावनात्मक निवेश है। हाल ही में होम लोन की ब्याज दरों में बढ़ोतरी की गई है, इसलिए पूर्व भुगतान की विचारणा विशेष महत्वपूर्ण है। उपयुक्त निवेश करने के लिए सही विकल्पों के बारे में समझना और उन्हें इस्तेमाल करना जरूरी है।
