Home loan part payment each month or lumpsum ?

POSTED BY 24adithya ON February 6, 2015 8:28 am ONE COMMENT


I have a home loan with HDFC and want to make yearly part payments against it. I was thinking of doing certain investments so that at the end of the year , I will have a lumpsum which I can deposit against the loan amount.

I was thinking of many options like ICICI iWish account; open ended SIPs; someone even suggested ULIPs (even though it has a locking period of 5 yrs). I am unable to decide on how and what approach should I undertake to make part payments.

I actually liked the ULIP product but that wouldn’t fulfill my requirement now. Any suggestions would be welcome.



One reply on this article “Home loan part payment each month or lumpsum ?”

  1. In home loan repayment, if more than the required EMI is paid, it will be reducing the loan amount. This is a good way to reduce loan burden, in the initial period as bigger component of the initial EMIs go to interest payment.

    It is advisable to pay the loan early unless one has better avenues to invest to get greater return.
    If one wants to pay higher EMI regularly, one can opt for reduced tenure and start paying.

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