{"id":4898,"date":"2023-08-28T16:48:12","date_gmt":"2023-08-28T16:48:12","guid":{"rendered":"\/blog\/?p=4898"},"modified":"2024-07-19T15:07:12","modified_gmt":"2024-07-19T09:37:12","slug":"5-tips-to-prepay-your-home-loan-faster","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-home\/5-tips-to-prepay-your-home-loan-faster\/","title":{"rendered":"5 Tips to Prepay Your Home Loan Faster"},"content":{"rendered":"\n<p>Prepaying home loan might seem to be a difficult and tedious\ntask for a fixed salaried person, but proper planning and a little bit of\nfinancial discipline can help you achieve this. While many borrowers consider home\nloan prepayment as a top priority financial exercise, others believe normal\nmonthly EMIs give them tax saving. Here they forget that it deprives them of\nthe HRA component in their CTC. Plus, you can never forget the burden of home\nloan in your lives. One of my friends, after paying the first installment of\nhis home loan said, \u201cLooks like someone has tied chains to my feet and I am\nasked to pull an elephant.\u201d The statement, though ironically said often holds\ntrue for many middle- class households in India. One has to make financial\ncompromises, now and then. Repayment of the home loan before the estimated time\nnot only gives financial freedom but also adds to family happiness and content.\nHowever, before you start the prepayment process, you should ensure that you\nand your family are financially secure. You must keep aside an amount that\nequals 4 -5 EMIs which will help you in the case of an unexpected job loss or a\njob change. You must also have an exigency fund for health and other emergency\nneeds. Plus, your children\u2019s education needs should also be taken care of.\nClearly, your home loan prepayment plan in no way should affect these.<\/p>\n\n\n\n<p class=\"has-vivid-red-color has-text-color\"><strong>Additional Read:<\/strong>  <a href=\"https:\/\/tata-blog.osian.dev\/blog\/home-loan\/top-things-to-keep-in-mind-before-prepaying-your-home-loan\/\">Home Loan Prepayment: Top Things to keep in mind before prepaying<\/a> <\/p>\n\n\n\n<p>Let\u2019s have a quick look at some tips that can help you repay\nyour home loan before its actual tenure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">\u2022&nbsp;&nbsp;&nbsp; Start making partial payments whenever your pocket allows<\/h2>\n\n\n\n<p>The sooner this practice should is adopted, the earlier you\ncan finish off your loan. So, if you are planning to buy a brand new LED this\nfestive season, you need to postpone this idea for some more time. Instead, try\nto deposit festival bonus in your home loan account. Partial payment can also\nbe done with your maturing fixed deposits and other investments. You must check\nall your investments and whether they are paying you more interest than what\nyou are paying to your home loan repayment. It is estimated that average loan\ntenure in India is 7 to years, therefore, one should not leave any opportunity\nof prepaying the loan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">\u2022&nbsp;&nbsp;&nbsp; Increase EMI\namount with increase in income<\/h2>\n\n\n\n<p>At the time of loan approval, banks fix the home loan EMI amount to 40- 50% of your take home salary. But as years pass by and your salary increases, the EMI remains the same. To maintain this balance, one should keep tweaking the EMI structure with increase in income.<\/p>\n\n\n\n<p class=\"has-vivid-red-color has-text-color\"><strong>Additional Read:<\/strong>  <a href=\"https:\/\/tata-blog.osian.dev\/blog\/home-loan\/tips-to-reduce-home-loan-emi\/\">How to Reduce Home Loan EMI &#8211; Tips and Tricks <\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">\u2022&nbsp;&nbsp;&nbsp; When is the right\ntime to prepay home loan<\/h2>\n\n\n\n<p>You must be knowing by now that your lender charges mostly interest from the initial EMIs. The amount that goes for principal repayment is almost negligible. Hence, it is advised to prepay your home loan in the first 7- 8 years of your loan tenure. In this way, you will be able to save a good value of interest amount. However, if there is more than one loan running simultaneously, you should first aim to pay off the loan with more interest.  <\/p>\n\n\n\n<p>In a nutshell, it is always beneficial to pay off your <a href=\"https:\/\/tata-blog.osian.dev\/home-loan.html\">home loan<\/a> any time before its expected tenure. Until the last couple of years, banks and other financial institutions were charging a significant amount as a penalty for closing home loan account before time. But, RBI has waived of this rule in June 2012. So, now you won\u2019t be paying any penalty to the lender if you wish you close your loan account before time. <\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/tata-blog.osian.dev\/home-loan.html\">Apply for Affordable Housing Loan<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Prepaying home loan might seem to be a difficult and tedious task for a fixed salaried person, but proper planning and a little bit of financial discipline can help you achieve this.<\/p>\n<p><a href=\"https:\/\/tata-blog.osian.dev\/blog\/home-loan\/5-tips-to-prepay-your-home-loan-faster\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":4899,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[25],"tags":[],"class_list":["post-4898","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-home"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Home Loan Prepayment: Tips to Prepay Home Loan Faster - Tata Capital Blog<\/title>\n<meta name=\"description\" content=\"Want to prepay home loan? 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Click here to know more details on home loan prepayments!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/5-tips-to-prepay-your-home-loan-faster\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-28T16:48:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-07-19T09:37:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2020\/01\/5-tips-to-prepay-your-Home-Loan-faster.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"348\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tata Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tata Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/5-tips-to-prepay-your-home-loan-faster\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/5-tips-to-prepay-your-home-loan-faster\/\",\"name\":\"Home Loan Prepayment: Tips to Prepay Home Loan Faster - Tata Capital Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\"},\"datePublished\":\"2023-08-28T16:48:12+00:00\",\"dateModified\":\"2024-07-19T09:37:12+00:00\",\"author\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a\"},\"description\":\"Want to prepay home loan? 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