Home Loan Repayment Smart Tips: Prepayment and these smart methods can help you repay your home loan quickly. You can also save lakhs in interest. Even banks won't tell you these things.

Buying a home is almost everyone's dream. Many people save for years, but the money isn't enough. Therefore, people resort to home loans. Millions of people in the country have purchased homes with loans. Many banks and NBFCs provide loans.

After taking out a home loan, you have to pay a fixed EMI every month. Initially, everything seems fine, but over time, the interest burden starts increasing. Paying EMIs for a long time can lead to lakhs of rupees being spent on interest alone. Therefore, it is important to plan wisely.

Therefore, we tell you some ways to repay your home loan quickly. When you take out a home loan, a large portion of the EMI goes towards interest in the initial years, and the principal amount reduces very little. This is why the loan amount doesn't reduce rapidly in the initial years. Therefore, try to make extra payments periodically.

If you receive a large sum of money from a bonus, tax refund, or investment, invest it in prepayment. This means paying a portion of the loan in advance, in addition to the EMI. This will reduce the principal amount, provide interest relief, and shorten the loan tenure.

Another smart approach is to pay an extra EMI every year. For example, if you pay 13 EMIs instead of 12, the loan tenure is reduced by several months. This results in significant interest savings in the long run, easing your burden.

If your income is increasing, consider increasing your EMI slightly. Increasing the EMI will help you repay the loan faster and reduce the interest. Just be careful not to increase the EMI so much that it impacts your other expenses. Therefore, pay special attention to the EMI increase.

Always review your loan conditions. If necessary, consider reducing your interest rate or switching banks. It's common to find that other banks offer lower interest rates. Therefore, this step will also be financially beneficial. Keeping these things in mind can help you repay your home loan faster than usual.