If you have taken a home loan and a car loan together, what should you do now so that you can repay the loan quickly, let's understand.

Taking a home loan and a car loan together can be financially heavy, but by making the right strategy, you can repay them quickly.

If the interest rate of the car loan is high, then focus on repaying it first, as this will reduce the total interest burden. If the amount of the car loan is less, then finish it quickly and get rid of one EMI. After which it will be easier to focus on the home loan.

Understand your financial situation.

Income and Expenditure: Make a list of your monthly income and essential expenses. See how much money is left after the EMI.

Loan details: Note the interest rate, EMI, and remaining period of both loans. Usually the interest rate of a home loan (8-9%) is lower than that of a car loan (9-12%).

Lumpsum payment: If you get bonus, tax refund, or any additional income, then put it in the loan principal. Most banks do not charge any prepayment.

Increase EMI: Try to increase the EMI, this will reduce the loan tenure. For example, a car loan of Rs 10 lakh (10% interest, 5 years) will have an EMI of around Rs 21,000. By paying Rs 5,000 extra every month, it can be over in 3 years.

Loan refinancing

Lower interest rate: If the current interest rates are high, transfer the loan to another bank at a lower rate. For example, if the car loan is at 11% and a bank offers 9%, it can be beneficial.

Home loan top-up: Some banks offer top-up loans with home loans, which have a lower interest rate. Use it to repay the car loan.

Keep an emergency fund

Do not exhaust all your savings in a hurry to repay the loan. Make sure to keep an emergency fund equal to 3-6 months of expenses.