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5 Tips to Repay Your Home Loan Easily

Buying a home is one of the biggest investments you will ever make. In today’s times of rising rates of property as well as that of construction, you will need access to a large amount of funds. This is often easier said than done. Thankfully, you can look up to lending institutions to procure a Home Loan. Since such a loan is accompanied by attractive interest rates and flexible repayment periods, it will prove to be a more befitting decision as compared to the investment of your entire savings on building/purchasing the house.

You can opt for a Home Loan, in order to –

  • Buy a residential property currently under construction
  • Purchase a ready-made residential property
  • Buy a plot in a private development
  • Construct a new property to be used as a house
  • Purchase a plot with the aim of construction of a house

Typically, Home Loan repayment is made in the form of equated monthly instalments (EMIs) typically spread over a period of 10 to 25 years. As can be understood, the repayment requires a significant level of commitment. However, it isn’t always that you ought to wait for this long in order to pay off your debt. With some simple tips, you can now easily repay your Home Loans, in a manner that is both swift and cost-effective.

Let us take you through some of our most trusted tips for the same!

  1. Select the Loan Repayment Period Carefully

The loan repayment period is the tenure through which you pay regular EMIs to repay your loan along with the interest. This period is usually calculated on the basis of your annual income. While it is suggested that you should select an instalment that equates 35 to 50% of your income, we recommend you to keep your EMI on the lower end. While this will elongate your repayment period, it will ensure that you enjoy a better cash flow and do not face any financial crunch. And whenever possible, you can always make prepayments towards the loan amount.

  1. Make Prepayments When You Can

Whenever you have access to additional funds, ensure that you make a lump-sum prepayment. Not only will this help you reduce your loan liability, but will also decrease the payable amount of interest on the loan. Since some banks and lending institutions charge a prepayment fee, make sure you Apply for a Home Loan with floating rate to ensure zero prepayment charges. It will then be convenient for you to pay the entire amount or part of your outstanding amount, as and when you have some extra money in hand.

  1. Make Your Investments Pay For You

In case you have investments such as PPF, Postal Deposits, Mutual Funds or Fixed Deposits, which are yielding a lower return than the interest that you are paying for your Home Loan, close these investments, and use the money to pay off the outstanding amount on your loan. This will eliminate the need for you to manage multiple funds and investments, while also ensuring that the most significant loan of your life is efficiently taken care of.

  1. Home Loan Balance Transfer

One of the greatest advantages of taking a Housing Loan is the ability to opt for Home Loan Balance Transfer. This tool proves to be extremely helpful to reduce the rate of interest applicable on the loan amount. Using this alternative, you can easily transfer your entire outstanding Home Loan balance to a bank or housing finance company which offers lower rates of interest. However, before you do so, it is recommended for you to approach the existing lender and request for a lower interest rate. Thanks to Reserve Bank of India’s MCLR (marginal cost of funds based lending rate) policy, chances are that your lender will align the rate of interest.

  1. Pay Your EMIs in Time

Your credit history speaks for your financial stability. It is, therefore, extremely essential for you to pay all your EMIs well within time. Missing out on the same will not only cause a dent in your credit score but will also force the lender to analyze your credibility. In the long run, such defaults may even diminish your chances of getting another loan or Credit Card.

We hope that these simple and easy to follow tips will help you save a large sum of money while enhancing your chances of repaying your home loan in the most convenient manner possible!

Also Read : The Evolution of Home Loans in India

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

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