A home loan is often the biggest financial commitment for most individuals. While it helps you own your dream home, the long tenure and interest burden can feel overwhelming. The good news? With the right strategies, you can repay your home loan faster and save lakhs in interest.
1. Opt for Higher EMIs When Possible
2. Make Regular Prepayments
3. Switch to a Lower Interest Rate
4. Choose a Shorter Tenure
5. Use SIPs or Investments for Prepayment
6. Avoid Missed Payments
7. Increase EMI with Every Salary Hike (Will share my story on this)
Benefits of Early Repayment
- Save lakhs in interest
- Become debt-free sooner
- Improve credit score
- Free up funds for other investments
My Home Loan Repayment Story (Short & Fun Version)
In 2020, I took a ₹65 lakh home loan with a 25-year tenure. My EMI started at ₹40K, and I played it safe for the first year. Once I got comfortable, I pulled a little trick:
Year 1: Increased EMI by ₹20K.
Every Year After: Added ₹10–15K more.
Here’s the magic: My EMI hits on the 10th of every month, so whatever’s left, I survive on. My brain adapted, expenses shrank without me noticing. Salary hikes were modest (5–7%), but consistency was key. Result? Tenure dropped from 25 years to just 7–8 years. Loan will be gone in 2–3 years!
The Numbers Behind the Magic
Original Plan:
EMI: ₹50,168
Tenure: 25 years
Total Interest: ₹85.5 lakh
My Plan (8 years):
EMI: ₹91,888 (average after increases)
Tenure: 8 years
Total Interest: ₹23.2 lakh
Interest Saved: ₹62.3 lakh!
That’s almost the price of another flat in some cities!
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