Bajaj Markets

Is it Right Time for me to prepay my Home Loan?

Do you have an outstanding home loan and are you planning to pre-pay it in lump sum? Owning a home is a big achievement, and availing a loan to do so is a big-time commitment. The tenure of the loan and the amount of the loan are both massive and any borrower wants to close it at the earliest given the magnitude of it. Home loan prepayment can lead to financial benefits as it reduces the burden of paying huge interest rate and the money can be used for other investments. In India, the average tenure for this loans is 10 years, therefore, people prefer prepaying at any given opportunity.

When is the right time for Home Loan Prepayment?

You can prepay the loan only when you have surplus cash. The surplus cash comes in when the flow of income rises. In such a scenario, the you can either clear the loan in one go or increase his EMI amount and shorten the tenure to avoid any closure charges. Banks normally do not encourage pre-payment, therefore, they penalize you with a pre-payment charge. Another option is that you pay an extra hefty EMI annually which every bank allows without any additional costs. So, the final decision to prepay or to shorten the loan period, stays with borrower, who decides what suits him best.

How to prepay Home Loan?

Most banks do not have the facility to prepay online. So, the borrower must go personally or send a representative to close the loan. There are certain things that the borrower must keep in mind before loan foreclosure, they are as follows:

The time for loan prepayment entirely depends on how the borrower wants to spend his money and how the market favours his decision. Only after weighing all these options, they should take this step and evaluate if this move is profitable for them or works in their favour in the long run.

Looking to transfer your existing home loan or applying for a new one? If yes, then you should definitely choose Bajaj Finserv Home Loan at Finserv MARKETS. With us, transferring your existing loan or applying for a new one is easy, quick and completely hassle-free. What’s more? The entire process is online and comes with attractive benefits, features and interest rate. So why wait? Head over to Finserv MARKETS, today!

“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs . What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”