BEST OPTIONS FOR BANK HOUSING LOAN REPAYMENT

POSTED BY Santanu Bhattacharya ON March 15, 2012 12:55 pm COMMENTS (2)

Dear Sir

I have taken a Bank loan of Rs 12 lac for 20 yr perid from SBI to purchase a flat 2 yr back.

I am painfully watching how huge amount of Interest they are deduction from my EMI whereas a very less amount of Principal amount has been repaid.

I wanted to know the best option for repayment as per following :

1. Should I increse my EMI to repay the loan fast or

2. Should I deposit a lumpsump amount (say 50k in a year) into my Loan A/c to get releif from Inrest burden.

If there is any other options to get rid of the Interest burden..

I shall be greatful for your advice please.

With Best Regards

S. Bhattacharya

Ranchi, Jharkhand.

 

 

2 replies on this article “BEST OPTIONS FOR BANK HOUSING LOAN REPAYMENT”

  1. Dear Santanu, what’s your mly income, EMI amount, any other EMI, living expenses, current situation of any emergency funding, current investments & assets apart from this house? Please answer these questions.

    Thanks

    Ashal

  2. This is how it goes : Initially you end up paying huge interest. If you end up getting some additional cash, make part payment. Ask them to reduce the tennure.

    Increasing EMI should be done only after through calcuation. You should have some emergency funds. If you know that you are going to get hike in month or two, then EMI can be increased. Any increase in EMI should not burden you with compromises on basic needs.

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