A home loan is something that gives Goosebumps to almost every one of us. Thus, you must assure yourself with a proper repayment plan while applying for the same. As this is a perfect way to deposit the home loan amount in a short span of time. But, apart from drawing a proper payment plan you should also keep the dos and don’ts of the home loan repayment in mind.
Remember every loan comes with little uncertainty. This is mainly because of the three below-mentioned reasons.
Fluctuation in the Interest Rates
Declaration of CRR Rate by the Reserve Bank of India at regular intervals
Oscillation in the Real Estate market
Now it’s time to know the dos and don’ts of home loan repayment in order to pay-off the entire loan value. So, first look at the:
- Know Your Budget
This is the first and foremost thing every home buyer must evaluate. Nothing will work if you don’t how much you save and how much you are able to pay as an EMI. So, have a look at your expenses and savings before applying for a home loan. As it will reflect you largely once the loan is sanctioned and your EMI starts.
- Choose Loan Wisely
Definitely, your bank must also be providing the home loan but look for more options prior making a decision. We suggest you compare the interest rates of various banks. Then apply for the one which asks for the minimum interest rate as it will keep the repayment amount least along with a short repayment tenure.
- Pay Easy EMIs
The EMI is an equated monthly installment against a particular amount. This amount depends upon the home loan value, interest rate and the time of repayment. So, maintain stability in paying-off the EMIs. This is an easy manner to repay the home loan amount.
- Pay in Advance
You also have the option to prepay the home loan. But never pay-off the entire home loan amount as it won’t help in availing tax benefits for a longer period. So, submit partial amount and do ask for the payment receipt. This will act as an acknowledgment of your payment.
After knowing the things to do now you must also learn about the don’ts of home loan Repayment.
- Never Submit More than 30 Cheques
The submission of cheques to the bank is for your own convenience. But, avoid handing over more than thirty cheques to the bank in one go. This will lower your headache to collect the unused cheques from the bank at the time of closing the home loan.
- Avoid Lumpsum Prepayment
The partial payment of a loan in a hefty amount is good. But, paying a lump sum home loan amount is a wrong thing. This complete prepayment of loan makes you pay the higher value of income tax. So, this is one of the don’ts for home loan repayment.
With four dos and two don’ts you are now all set to apply for the home loan. These points are the key to close a home loan in the short period of time.