Every
customer in the market is worried about the amount of interest paid on a home
loan during their repayment tenure. A blind calculation gives a result of 100%
of loan amount is the amount of interest paid on a home loan during the tenure
considered if the customer pays the EMI’s for the whole tenure i.e 20 Years. This is a
shocking result to every customer because the home loan interest rate looks very low but
when calculated it is exactly the same amount of higher amount of loan that we
are paying towards interest on the home loan.
If
Some simple measurements taken at the time of availing the home loan then we
can avoid the huge amounts that to be paid towards interest of home loan. Just
follow the stated below before applying the loan
·
Make more margin money payment towards the
property
·
Apply for lesser loan amount which will
have lesser interest rate
·
Opt for least possible tenure
·
Opt for possibly higher EMI
·
Make part-payments yearly twice at least
·
Go for home loan linked life and General insurance
·
Opt for Interest saver account if available
Let’s
see how the above measurement will save the interest on Home Loan. Banks
usually give 80% of the property cost as Home Loan, means higher the property
cost, higher the loan, Higher the EMI and Higher the Interest component of EMI.
For the initial years the Interest component will be higher so to avoid that
opt for lesser loan amount, lesser tenure and Higher EMI with which one can
save a very good amount on Home Loan Interest and making part payments will be
most helpful too as the amount paid will be directly deducted from the
outstanding principle of loan account which in turn reduces the interest and
the repayment tenure also.