How to pre-pay home loan faster – How should I do that ?

POSTED BY anu_963 ON October 4, 2014 9:48 am COMMENTS (3)


I took 57 Lac Home Loan in 2011 and paying EMI every month 55K, so since then i have already paid 19 lac i guess but the principal reduced only 2lac, now i have little cash flow to pay more EMI per month, say 85K, so i want to understand if i increase my EMI will extra money which i am going to pay every month directly reduce my Principal or how it work ?

Any suggestion is highly appreciated.


3 replies on this article “How to pre-pay home loan faster – How should I do that ?”

  1. Raja says:

    Do not increase EMI. That will become a burden in case you need cash at some point in future and are not able to pay huge EMI. Instead do prepayments whenerver you have extra money. They will reduce the principal by the same amount and future EMI will be composed of lesser interest component as the interest will be calculated on the reduced principal.

  2. amit.sharma111 says:

    Generally, if you are paying any amount which is in addition to your decided EMI – then that amount in directly deducted from your principle immediately and the interest calculated on the remaining principle amount.

    Ex: You have 20L as remaining principle loan amount to be paid to bank.
    If you have 2L extra and you submit it to the loan account, then remaining payable amount would be 18L and the interest would be calculated on 18L only.

  3. Hemanth says:

    Ask the bank to increase the EMI and by this, your loan will be completed faster.

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