How to Pay Extra EMI for Home Loan?

A home loan is likely to be the most significant financial responsibility a person will ever have. It's also the longest term loan. As a result, most lenders are constantly looking for ways to reduce their respective monthly payments (EMI) with the help of home loan prepayment . You can pay your home loan faster if you have any financial ways or other finance options to pay the EMI early to reduce the burden of paying a huge amount in the long run. This will help you stay clear from all the penalties or fines and will improve your credit score in the future, so that you can enjoy your 40’s in a better and happier way. 

How to pay extra EMI for home loan?

Paying extra EMI for home loan will help you relieve in the future and reduce your burden of paying EMI in the long run. The following techniques will help you with home loan repayments.

1) Prepay the EMI

Investments such as bonus or life insurance maturity earnings may be used to prepay a portion of the mortgage on a regular basis. You can significantly reduce the loan term by making a couple more extra payments. It is preferable to make the extra payments with the help of extra EMI payment calculator during the loan's initial periods, when the primary balance is low.

2) Choose the short tenure

An EMI of Rs 30,000 may appear to be more expensive than one of Rs 25,000, however in this situation, higher is beneficial. If you choose a longer term to pay a smaller monthly EMI, you will end up paying considerably more in interest than if you choose a larger monthly expenditure over a limited timeframe. The more you try to pay extra in EMI’s or lump-sum amount , the more it will be beneficial in the future.

3) Refinance the credit

Make the switch to a company that offers better rates when you notice that the overall cost of repaying your home loan can be reduced. Creditors frequently reduce their rates at random times. By switching to a provider with lower interest rates, you can save money on interest. The changeover will require a loan evaluation, new paperwork, and the payment of a charge.

Home loan prepayment is the best option to deal conveniently with the EMI.

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As a borrower of a home loan, you must be aware of the latest updates. Since I am aware of can we pay extra amount in home loan, I can share some details on it. I learned from a bank official that one can pay a part of the home loan payment at least once a year. Let me be more precise about the amount in this comment.

Can I Pay Extra Amount in Home Loan?

Yes, you can pay some part of the payment of your home loan at least once a year. A payment of 20 to 25% of the loan amount can be made. It can reduce the home loan principal amount significantly and will also help you reduce the EMI amount of your home loan or even the repayment period.

Here are the options:

• A borrower with restricted liquidity can pay the extra EMI on home loan every year

• He/she can pay 5% of the loan amount per year

• Or prepay 5% of the loan balance every year

But it is hard to say how to pay extra amount in home loan. It can be done by visiting the bank’s official website or by visiting the bank physically yourself. So it's best that you visit your bank and ask about the procedure from the bank officials.

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Can we pay more than emi in home loan?

I think we can make a big difference if we put in a little effort on our part to pay back a large house loan quickly. Make an extra annual one-time EMI payment. So, if you ask me can we pay extra EMI for home loan, I would say, most definitely. This means we can pay back our home loan over the course of a year by making a total of 13 EMIs. We can make one additional EMI payment throughout the year when we have extra money available.

Can I Pay Extra EMI for Home Loan Every Month?

Yes, you can. I will try to explain this to you with the help of an example.

• Let's say you obtained a Rs 50 lakh, 20-year home loan. Your monthly instalment at a 7.5% interest rate will be Rs 40,280.
• Now, assuming you pay back your loan consistently for 20 years—that is, simply 12 EMIs annually—you will accrue interest totalling Rs 46.7 lakh on the Rs 50 lakh loan principal.
• Making an additional EMI payment of Rs 40,280 annually.
• In 16–17 years, your home loan is paid off. Additionally, you only pay interest of Rs 38.15 lakh.
• By making just one additional EMI payment, you can avoid paying interest altogether and pay off your house loan faster.

Although many people wish to pay off their house loans early, they don't always have the extra money. However, customers do occasionally receive more money (in the form of bonuses, incentives, or reimbursements) that they might use to make additional prepayments, such as an extra EMI per year. Even if this additional funding isn't much, it nevertheless contributes to the debt being paid off faster. I hope now you know can we pay more than EMI in home loan. Get the Lowest Interest Rates and Maximum Loan Tenure with NoBroker Home Loan. Read More: How Much EMI for Home Loan at 45 Lakh?

My sister, who is a banker, always tells me that prepaying your loans is one of the smartest decisions we can make. Although there are banks that charge prepayment charges. But, if you are an HDFC Bank customer like me and are wondering how to pay extra EMI for home loan HDFC then let me tell you that HDFC Bank does not charge any prepayment charges for prepaying or for closing your home loan. Let me explain more about it to you. 

How to pay one extra EMI for home loan HDFC?

There are a few ways in which you can pay extra EMI or prepay your entire Home Loan in one go.

1. Part payment: This is the process in which you pay your EMI on regular intervals. But, if you pay above your fixed EMI , it results in reducing the principal amount and saving the extra interest cost on the loan.

2. For closure: This is the process where you pay the entire outstanding loan amount in one go and we get debt free. There may be some prepayment charges involved here.

How to pay extra EMI for Home Loan in LIC?

1. Visit the LIC HFL official website and then tap on the option customer portal.

2. Login using your credentials and then click on the option Loan Account Details.

3. Then tap on the prepayment tab and enter the prepayment amount.

4. After this, choose your mode of payment and make the payment.

5. After successful payment, you will receive a confirmation message on your email ID and registered mobile number.

How to pay extra EMI for Home Loan in SBI?

1. Log in to the SBI internet banking portal using your credentials.

2. Click on the home loan option and then choose the prepayment option.

3. Input the amount that you wish to prepay, and then choose the account from which you will make the payment.

4. Review all of the details that you've entered and confirm the transaction by making the payment.

5. After a successful payment, you will receive a confirmation message.

Now you know how to pay extra Emi for home loan HDFC,  LIC and SBI.

Get home loans from trustworthy banks all across India from NoBroker. Read More: How to Foreclose ICICI Credit Card EMI? How to Foreclose SBI Credit Card EMI? How to Foreclose HDFC Credit Card EMI Online?

Prepaying your loan is one of the options to cut costs if the prepayment period is prolonged. You can prepay your entire home loan balance or only a portion of it to reduce your monthly loan interest payments. The best thing you can do is pay off your loan payments with extra EMIs. So keep reading to know can I pay extra EMI for home loan.

Check your home loan eligibility on NoBroker here. Check out your home loan EMI through NoBroker EMI Calculator

Can I pay more than EMI for home loan?

You may periodically credit more into your loan account than your EMI amount to reduce your interest payment if and when funds become available. If you deposit more than your EMI, which is due on a regular basis, most banks won't impose a prepayment penalty.

What happens if I pay extra on my home loan?

The excess money paid will be treated as a prepayment and deducted from your remaining balance if you pay more than the agreed-upon EMI. With the updated remaining balance, the new EMI will now be determined.

What things to keep in mind while paying more than EMI?

Here are some useful pointers for quicker principal repayment on a home loan:

1) The total amount of interest paid can be decreased if there is a chance to prepay a portion of the loan before it matures. For such an allowance, banks impose a prepayment penalty fee.

2) You as a salaried worker have the option to increase your home loan's (year) EMI by a tiny percentage in order to reduce interest costs as net income rises each year. Based on the rise in your net income, the percentage increase must be calculated.

3) Consider you are getting bonus payments in addition to your salaries. Then you can use that amount to pay an extra EMI to pay off your loan faster while still saving money on interest.

Can I pay extra EMI for home loan must be clear to you now.

Read More: How does prepayment of home loan works? How to prepay an HDFC home loan? What is a prepayment of a home loan?