While availing a house loan, controlling the financial liability is important. A sound strategy can make huge amounts of money that can be saved and cut down the tenure of a loan. Smart choices like choosing a shorter loan tenure, raising EMI levels, or prepayment can help borrowers save interest outgo and become debt-free earlier. Learning how to maximise home loan repayment can result in huge savings that can be used by individuals to reallocate their funds in a more efficient manner and realise their long-term financial objectives. Careful planning is responsible for optimising returns and lowering debt. Explore to find out how you can save Rs 21 lakh and 5 years on Rs 52 lakh, 30-year loan.
Home loan conditions
Here, we are discussing about Rs 52 lakh home loan. The interest rate will be 9.50 per cent, and the loan duration is for 30 years.
What will be EMI on Rs 52 lakh loan for 30 years?
The estimated monthly instalment (EMI) on a 52 lakh loan will be Rs 43,724.
What will be total interest on Rs 52 lakh loan?
On this loan, the total interest will be Rs 1,05,40,791, considering a 9.5 per cent interest rate.
What will be total repayment amount of Rs 52 lakh loan?
On a Rs 52 lakh loan, the total repayment amount will be Rs 1,57,40,791.
Numbers Speak: Comparing 30-year vs 25-year tenure
In a 30-year tenure, the monthly EMI will be approximately Rs 43,724, and the total interest paid over the period will be around Rs 1,05,40,791. Plus, your total repayment amount on a Rs 52 lakh loan is Rs 1,57,40,791. Now, if you reduce the tenure to 25 years, the EMI increases to Rs 45,432 (just Rs 1,708 more). The total interest to be paid also drops to approximately Rs 84,29,668.
What will be your EMI on Rs 52 lakh loan for 25 years?
On a Rs 52 lakh loan for 25 years at a 9.50 per cent interest rate, the estimated monthly EMI amount will be Rs 45,432.
What will be your total interest on Rs 52 lakh loan in 25 years?
The estimated total interest in 25 years will be Rs 84,29,668 on a Rs 52 lakh loan.
What will be your total repayment amount on Rs 52 lakh loan in 25 years?
The total estimated repayment amount will be Rs 1,36,29,668.
How much money can you expect to save?
The estimated amount saved because of an increase in EMI will be approximately Rs 21,11,123. On the other hand, the time saved will be 5 years.
Also Read: SIP vs PPF with Rs 90,000/year investment: Which can generate a larger corpus in 26 years?