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How saving Rs 100 can save Rs 12 lakh on loan of Rs 50 lakh, check calculation: Home Loan

With their flexibility in repayment and the potential for savings, home loans fulfill housing dreams. Reimburse decisively to lessen residency and think about saving Rs 100 day to day.

More than just a financial tool, a home loan is more than that; It opens the door to realizing one’s housing goals. Across the immense span of our country, various banks broaden their assistance through the arrangement of home advances, empowering people to secure their treasured residences.

Homeowners will be able to gradually pay off their debts with these loans, which come with interest charges and the convenience of monthly payments.


Home loans are typically spread out over 15 to 20 years in the past. Nonetheless, it’s important that specific elements, like the client’s qualification, age, and different contemplations, can offer the chance of extending the credit term to a greater 25 to 30 years.

As the residency of the home credit broadens, so does the aggregate measure of interest that borrowers are committed to reimburse. As a result, industry professionals consistently advocate for consistent prepayments.

Borrowers can rapidly chip away at the loan balance by actively engaging in this strategy, effectively reducing the overall duration and leading to substantial savings.

Every borrower ought to keep strategic loan repayment at the forefront of their minds. The objective ought to be to get out of debt before the deadline is up. Individuals have the potential to significantly reduce the amount of their outstanding loans by taking such a proactive stance.

Let’s look at the idea of saving Rs 100 per day, which may seem like a small amount but can actually save Rs 12 lakh on a Rs 50 lakh home loan. This will help us better understand the potential impact.

There are numerous options for loan repayment. According to bankbazaar.com, reducing the loan term from 20 years to just 12 years can be accomplished by allocating 5% of the loan amount annually to repayment.

Alternately, the proactive strategy of increasing equated monthly installments (EMIs) annually can effectively reduce the loan term to 17 years, which is commendable.

Intriguingly, customers can increase their home loan EMIs by 5% annually, paving the way for loan settlement in just 13 years—an accomplishment that merits praise.

Throughout a year, this apparently pitiful sum gathers to a significant amount of Rs 36,500, which can be wisely used for prepayment purposes. Calculations on Fisdom’s website shed light on how much money can be saved by adopting this seemingly insignificant daily routine.

Given a home loan of Rs 50 lakh and an interest rate of 9.5%, one can save a staggering Rs 12 lakh over 20 years by diligently saving Rs 100 each day. If the loan term is extended to 25 years, the potential savings rise to an impressive Rs 20 lakh, further broadening the scope of possibilities.

Note: For debt instruments like home loans, various banks offer loans with varying interest rates. We don’t suggest depending on a particular credit number cruncher for deciding your credit. Instead, it’s best to talk to a financial professional for advice.

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