Home Loan Calculator: How one can save Rs 34.77 lakh in interest on Rs 75 lakh, 25-year home loan by 10% prepayment

Home Loan Calculator: Buying a location is simply a necessity for astir people, but existent property is expensive. One needs a batch of wealth to acquisition a location successful 1 go. So, they person to beryllium connected a location indebtedness to execute this target. Even aft making a bully magnitude of down payment, they whitethorn necessitate a ample amount. Since location loans are precocious successful magnitude and person agelong duration, the involvement connected the main whitethorn beryllium easy higher than the main amount. But fiscal concern changes with time. People get high-paying jobs; they get bonuses, spot shares, oregon wealth from immoderate different source. That wealth tin beryllium utilized to trim the location indebtedness involvement considerably. The involvement magnitude tin beryllium reduced done paying an other EMI each year, done making a higher down payment, oregon done prepayments. In this write-up, we volition springiness projections of however 1 tin prevention Rs 34.77 lakh connected a Rs 75 lakh, 30-year location loan.

Home indebtedness conditions

We are taking the illustration of a Rs 75 lakh location indebtedness for 25 years astatine the complaint of 9.50 per cent involvement rate. 

What volition beryllium EMI and involvement connected this loan?

The estimated EMI connected this indebtedness volition beryllium Rs 65,527, the estimated involvement volition beryllium Rs 1,21,58,175, and the estimated repayment magnitude volition beryllium Rs 1,96,58,175.

How to trim involvement by Rs 34.77 lakh?

The borrower needs to marque 3 prepayments of Rs 2.50 lakh each, which volition beryllium Rs 7.50 lakh successful full (or 10 per cent of the main amount).

When bash they request to marque prepayments?

The archetypal prepayment volition beryllium made 3 years aft the commencement of the loan. If the location indebtedness is starting from October 2024, the archetypal prepayment of Rs 2.50 lakh volition beryllium made successful October 2027, the 2nd of adjacent magnitude successful October 2028, and the 3rd of the aforesaid magnitude successful October 2029.

What volition beryllium interaction of it?

It volition prevention estimated Rs 34,76,282 successful interest, and the duration volition beryllium reduced from 300 months (25 years) to 236 months (64 months).

(Disclaimer: Our calculations are projections and are not concern advice. Do your ain diligence oregon consult an advisor earlier taking home).