A home loan is likely the largest debt you will ever take. Even a small reduction in interest rate or strategic prepayments can save you lakhs of rupees over the loan tenure.
Proven Strategies to Save Interest
- Make partial prepayments annually from bonuses or savings
- Opt for a shorter tenure if you can afford higher EMI
- Transfer your loan to a bank offering lower interest rates
- Increase EMI amount periodically as your income grows
- Use a home loan balance transfer calculator to compare offers
When to Prepay vs Invest
If your home loan interest rate is above 8%, prepaying is generally better than low-risk investments. For rates below 7%, investing in equity or mutual funds may yield better returns.
Plan your home loan with our EMI Calculator.
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