Home Loan EMI Update: You can save Rs 12 lakh on a home loan of Rs 40 lakh, loan takers must know this important thing

News, Digital Desk-  Every employed person wants to have his own house, but in today's time it is not so easy to buy or build a house in big cities. 

Most people have to resort to home loan for this. Home loan is also not for 2-4 years, but for 20-30 years. That is, if you make a home loan EMI for 30 years at the age of 30, then you will have to repay the loan till retirement.

In such a situation, today we are going to tell you a trick by which you can repay your home loan before time and also save money. Let's know about it.

Almost every working person wants to own a home, but buying a home in big cities can be challenging, often requiring a 20-30 year home loan. 

This means you may have to pay EMIs until retirement. However, there is a trick by which you can repay your home loan before time and also save on interest. By using this trick, you can get rid of the burden of EMI soon.

Let's assume that you have taken a home loan of Rs 40 lakh to buy a house and have to make an EMI for 20 years. If you have got this loan at a rate of 9.5 percent, then you will have to pay an EMI of Rs 37,285 every month for 20 years. 

In such a situation, you will have to pay interest of Rs 49,48,459 on a loan of Rs 40 lakh. That is, in total you will have to pay Rs 89,48,459. 

However, if you keep reducing the principal amount of your home loan little by little, that is, keep making partial payments, then your loan will end soon and you will also have to pay less interest. There can be many ways to do this.

How can you repay your loan quickly with one EMI trick?

Under this trick, you will have to pay an extra EMI every year. That is, generally you have to pay 12 EMIs every month in a year. If you pay an extra EMI every year, then you will have to pay 13 EMIs in a year. 

Let us assume that you pay this extra EMI at the beginning of every year. If you do this, then you will repay the loan of Rs 40 lakh taken for 20 years in just 16 months and you will have to pay about Rs 11.70 lakh less as interest on it.

This means that you will save money and the loan will be repaid soon. Paying one extra EMI in a year will not put any burden on you, while in the long run you will get a big benefit. 

However, some banks have a minimum limit for depositing money in the middle of the loan period. In such banks, at the time of taking a home loan, you can negotiate that the minimum limit should be equal to one EMI. (Bank Home loan)

Pay some amount in lump sum every year-

If you deposit an additional Rs 50,000 every year in lump sum at the beginning of the year, then your loan of Rs 40 lakh will be repaid in about 15 years. You will also save about Rs 14.50 lakh. 

If you pay Rs 1 lakh every year in lump sum at the beginning of the year, then your loan will be repaid in about 12 years and you will also save about Rs 22.20 lakh spent on interest. 

Increase your EMI a bit-

Your loan EMI depends on your loan amount, interest rate and tenure, which you have to pay every month. If you want, you can increase your EMI from the bank, for example, you can increase the EMI of Rs 30,000 to Rs 35,000. This way you can finish your loan quickly by paying the extra amount in a year.

By increasing your EMI by 5 per cent, your 20-year home loan of Rs 40 lakh will be completed in 17 years and 6 months and you will save Rs 7.3 lakh in interest. If you increase your EMI by 10 per cent, the same loan will be completed in 14 years and you will save around Rs 17 lakh.