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7 tip to complete home loan repayment quickly

Having significant debt obligations in life may give you sleepless nights. This congestive discomfort is especially true in the case of home loans.

For most of us, a home loan is the most significant debt in life, and we will be happy to close the mortgage at the earliest because the monthly burden of home loan EMI is not everyone’s cup of tea.

Many consider a prepayment of the loan as the only option to close the most significant debt of life at the earliest. There are many thoughts when it comes to deciding the way of prepaying the home loan. However, one size does not fit everybody’s approach.

The decision has to be made based on individual financial constraints and personal aspects. Just deciding to prepay the home loan does not help you reach the goal; preparing a way to save for prepayment without financial discomfort is key to success.

7 tips to complete home loan repayment quickly

Is the prepayment decision right for you?

Prepaying the home loan is one of the good decisions when you want to close the loan. Check if it is your cup of coffee before considering it.

You should take the tax benefits on home loan interest rates offered by the government into consideration before choosing the prepayment option.

You can avail tax benefit of 2 lakhs on the interest paid towards the home loan. If you are having substantial income to handle your prepayments, you can go for the choice and take the responsibility off your shoulders as quickly as possible.

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Calculate financial safety

I know that prepaying the home loan would save you significant home loan interest rates. However, you should fortify financial backup by calculating different expenses like children’s education, medical emergency funds, backup for home loan EMI in case of job loss recurring financial liabilities if any.

Increase your disposable income 

You may wonder how? Identify your stagnant money by digging deep into your financial records. Pull out the money from closing used credit card privileges, club memberships, and refinancing loans with low-interest rates.

After you increase disposable income, figure out how much you can prepay a home loan by using a home loan eligibility calculator.

You can also tighten your strings to boost up your savings and even consider replacing expensive entertainment with something creative.

Raise your EMIs

There are chances that you have opted for a small home loan EMI based on your income at the time of taking a home loan may be at starting of your career.

A smart option is to increase your home loan EMI as your income increase, take the help of home loan eligibility and EMI calculator to figure your EMI rise to reduce home loan interest rates.

Consider partial prepayments

Prepaying the home loan at a go is not a solution that fits all sizes. Instead, you can consider a partial prepayment of the home loan to reduce home loan interest rates further and close the housing loan at the earliest.

What should be Your Monthly Income Share On your Home Loan?

Purchasing a home, of course, is the biggest purchase in the life of the common man. Skyrocket real estate prices will never let you buy a home with a pocket fund in the early stages of life unless you have inherited good assets or liquid cash.

Taking a home loan becomes an important financial obligation for anyone who cannot afford to buy homes with the cash available in hand.

Now, wait!!! Take time to read the article completely before you step ahead hunting for the right home for you, taking the home loan depending on the financial need would be the second step obliviously.


Budget is the most important thing you should stick to while hunting for a home for yourself. There are homes available at the cost of 10 lakhs o ten crores depending on the location you live in but, what fits your budget matters the most.

I don’t suggest you compromise comforts for fetching the at low cost but, the repayment you make for the home loan should not stop you from reaching the other goals of life like a retirement plan,

educational needs of children, and other important goals of the life. You should always search for homes sticking to your budget limits and needed comforts.

How can I decide my budget for purchasing a home?

The term for the home loan is, in fact, the longest loan duration period to date, it can even extend to the period of 30 years depending on your home loan eligibility.

As the responsibility of repaying the home loan head for the long-term, it is important to calculate your repayment capacity with the help of a home loan comparison eligibility calculator before you fix the budget for a home loan.

All the lenders prefer the home loan borrowers to arrange 20% of the home value as a down payment, and the rest can be adjusted through a home loan depending on your home loan eligibility.

The more you can fund the down payment of the loan; the lesser will be the loan amount and so will the loan EMI. Other important factors that affect your loan EMI are Home loan interest rates and the term of the loan.

The EMI payout for the loan exceeds your repayment capability; you can either consider increasing the loan term or down payment of the home loan. Alternatively, you can compare home loan interest rates offered by different lenders and take the decision accordingly.

Making use home loan comparison eligibility calculator will help you fix the budget for your home and help you in narrowing down your search results.

Rule of thumb 

Still confused!!! Though there is a rule of thumb to decide the percentage of monthly income you spend towards home loan repayment, it is advisable to restrict it to 40% of your monthly income.

Though most lenders calculate your repayment capability based on the factors like your credit score, income size, and stability, you should not let them bite more than you can chew.

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