Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > How You Can Repay Your Home Loan Quicker

Loan for Home

How You Can Repay Your Home Loan Quicker

How You Can Repay Your Home Loan Quicker

Longer loan tenures can lower your equated monthly instalments (EMI). Eventually, though, you end up paying a higher amount as interest, sometimes even more than the principal. For instance, if you take a loan for Rs. 25 lakh for 20 years at a home loan interest rate of 9.25%, you will be paying Rs. 29,95,045 as interest. Therefore, it is advisable to repay your home loan as fast as possible. 

Know More

Of course, home loans offer substantial tax benefits. However, you should run a cost-benefit analysis to find out what your total interest outgo amounts to and how much you will be saving from the tax deductions. If the former exceeds the latter, it is better to clear the loan. Here is a detailed guide to making home loan repayments faster.

Utilize the Pradhan Mantri Awas Yojana (PMAY) scheme

Under the PMAY scheme, if your annual income does not exceed Rs. 18 lakh, you can enjoy a home loan subsidy. You may want to shift your existing home loan under the Pradhan Mantri Awas Yojana through the balance transfer option and take advantage of the subsidized interest rate. It will enable you to pay larger EMIs or prepay your housing loan and effectively shorten your loan tenure. 

You can use online calculators to check your PMAY eligibility according to your annual income and date of execution of your sale deed and find out how much subsidy you are entitled to. 

Make a part prepayment of your home loan

Prepayment of your Home Loan

If you come across a windfall and have no debts with interest rates higher than your housing loan, consider prepaying a part of the home loan. Any bonus or incentive you receive at work can be utilized to make partial home loan repayments. It will lower the principal amount you need to repay. Moreover, after making the payment, reduce the tenure rather than lowering the EMI amount to save on interest.

Keep making partial payments

You can keep making small repayments with whatever extra money you have. You may consider making an additional EMI payment each year. Even small extra payments can lower your loan tenure to a significant extent.

Increase your EMI amount

You may need costlier loans in case of emergencies if you do not have contingency funds. Therefore, when no excess funds are available, do not liquidate your existing savings to prepay your home loan. Instead, you can consider increasing your EMI. EMIs are usually limited to 40-50% of your take-home pay. However, an increase in income with an unchanged EMI can decrease the EMI-to-income ratio. Keeping the ratio constant is recommended to hasten the process of repayment.

Conclusion

A disciplined approach towards financial planning and cutting unnecessary expenses will help you repay your home loan faster.

With Tata Capital home loans, you can start with lower EMIs and increase the amount when your income grows. Apply for quick home loans by filling up simple forms online and take advantage of attractive home loan interest rates as well as flexible repayment options to pay off your home loan quicker.

Apply For Home Loan

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
anyror modt charges 712 utara online gujarat pre emi calculator earnest money deposit Goa Land Record earnest money khasra number meebhoomi Assam Land Record
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.