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Home Loan Prepayment Tips: The Reserve Bank of India is constantly making big efforts to control inflation in the country. Yesterday, the Reserve Bank of India has once again increased its repo rate (RBI Repo Rate) by 25 basis points to curb inflation in the country. After this increase, now the repo rate (RBI Repo Rate) has increased to 6.50 percent. It is worth noting that since May last year, the repo rate has been increased a total of 6 times and it has increased up to 2.50 per cent. Due to this increase, the burden of EMI of Home Loan, Car Loan, Education Loan, Personal Loan etc. is increasing on the general public.
Growing trouble for home loan borrowers
According to the report published in Money Control, V Swaminathan, Chairman of Andromeda Sales and Apnapaisa.com, while giving information about the increasing EMI on home loan, said that after this latest increase, now people’s EMI (Home Loan EMI) will increase by 2 to 4 percent. An increase of up to Rs. At the same time, the effect of this 2.50 percent increase on a home loan of Rs 70 lakh for 20 years will be seen up to 20 percent. The EMI of people will increase from Rs 10,978 to Rs 65,249. In such a situation, it is certain that it will affect the budget of the people’s house. In such a situation, to keep their monthly budget correct, people can repay their loan as soon as possible by choosing the prepayment option of the home loan. Actually, when the repo rate increases, its direct effect is seen on the EMI of the home loan. In such a situation, people either extend the loan tenure or prepay the loan.
Is home loan prepayment a better option?
When a borrower pays back the home loan partially or completely before the time, it is called prepayment. Through this, you can reduce your loan tenure and EMI burden. But to do this, you should not have shortage of liquidity. Often, when the burden of loan EMI increases, they extend their home loan. At present, you will have to pay Rs 145 more on Rs 1,000 for a 15-year home loan. On the other hand, if you increase the loan limit, then it will increase further for a period of 7.5 years. In this case, you will have to pay more interest for the same loan. In such a situation, to reduce the tenure, you can prepay the home loan. If you make prepayment of the loan, then keep in mind that for this you will need a hefty amount.
Keep these things in mind while making home loan prepayment-
According to experts, if you do not currently have a shortage of funds, then you can reduce your EMI burden by prepaying the home loan, but before doing so, make sure that you do not have a shortage of emergency funds. Needed. If you are short of funds, you may have to collect funds by liquidating your investments. Only after this you will have to make the prepayment of the loan. If you are able to pay the EMI even after the home loan interest rate increases, then you do not need to liquidate the investment and make home loan prepayment.
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