Remember that the EMI for the home loan consists of two parts: interest charged on the borrowed sum and the principal. During the first few years of repayment, you pay more towards the levied interest and less towards the principal. So, during this time, it is better for you make part prepayments. Most lenders like State Bank of India, Bank of Baroda, Canara Bank, ICICI Bank, Axis Bank, allow you to part prepay your home loan without charging any fees. This will help reduce the principal and thus reduce the total interest levied on you. Paying 5- 10% more than the fixed EMI helps you to close the Loan at the Earliest, you can also save more interest to be paid.
Now the Home LOan interest rates also reduced in the year 2020, those who are paying home loans with high interest rates may change it o EBLR. The interest rates will be revised quarterly.
Now the Home LOan interest rates also reduced in the year 2020, those who are paying home loans with high interest rates may change it o EBLR. The interest rates will be revised quarterly.
