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Prepayment of Home Loans gets easy with a bit of planning and discipline

Finway Capital is an organisation that motivates people to fulfill their dreams that would be difficult to achieve earlier due to the inaccessibility to right financial consulting and solutions. Finway is expanding its boundaries from Delhi/NCR to top ten cities of the countries, including the four metros and this expansion is due within 2 years. Also, Finway is planning to launch the concept of instant cash loan in Delhi for people who are not that tech-savvy and need offline support.

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Prepayment of Home Loans gets easy with a bit of planning and discipline

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  1. PrepaymentofHomeLoansgetseasywithabitofplanning anddiscipline Adopting an approach of prepayment of loans is not new in the financial domains, but the people in India mostly hesitate to do so when the loan amount is too significant. However, it looks like the case is changing with time and people are taking on prepaying their home loans at a pace like never before. Financial advisors suggest that there prevails a myth that prepayment of loans can choke down the borrower’s cash flow. However, with the aid of numerous certified loan experts in the country, the myth has lately been busted and brought down to ashes. As per the experts, with a disciplined approach and adequate planning methodologies at work people can greatly utilize their bonuses and incentives to make part payments without many difficulties. Statistics suggest that around 65-70% of home loans that have tenure of about 20 to 25 years get repaid within the time of seven to nine years. Power of Pre Payment Prepayments need not always have to wait for the windfall time in loan tenure. Instead one can start with small but regular prepayments anytime to ultimately chip away the entire loan before the tenure even ends. Loan experts suggest that people who buy homes with home loans in their late 20s or early 30s are often able to get clear with their loans in the next seven to eight years through the medium of annual increments and bonuses that they are aggressively working to achieve. The idea to do so is to ensure that the lump sum receipts were put to good use without disturbing their retirement planning by anymeans. Options to do the prepayments withease Start with a small amount and then increase it gradually down the line at the rate of10%. Allot a fixed amount that needs to be paid every year as prepayments without reducing theEMI Increase EMI if you think you can go ahead smoothly even after a liquidity crunch and cut the tenure on anoverall. The taxdilemma Paying interest to save taxes is not found to be a good idea when the borrowers tend to carry out a proper cost-benefit analysis. Loan experts suggest that if the amount paid as interest on home loans gets invested in other financial instruments, then they would deliver a much higher yield to cover the financial crunch created by tax payments. Financial experts suggest investments made in equity funds yield many lucrative financialopportunities.

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