Here are some savvy tips that can help you reduce the principal amount of your home loan.
Increase EMI: Boosting your Equated Monthly Instalment (EMI) even slightly can work wonders. The extra amount chips away at the principal, helping you save on interest over the long haul.
Lump Sum Payments: Got a bonus or tax refund? Channel that windfall towards your principal. Even a one-time large payment can significantly dent your principal amount.
Rate Conversion: If interest rates drops, talk to your financer for rate conversion at a lower rate. Low rate of interest would help in reducing principal.
Opt for Shorter Loan Tenure: A shorter loan period often means higher EMIs, but it also translates to paying less interest overall, chipping away at the principal faster.
Avoid Prepayment Charges: Ensure your loan agreement doesn't come with hefty prepayment penalties. If not, consider making periodic lump sum payments without incurring extra costs.
Remember, every bit counts. With patience and diligence, you can steadily reduce your home loan's principal amount, inching closer to a debt-free future!
