For many homeowners, paying off a home loan can feel like a never-ending burden. However, financial experts have shared strategies that can significantly reduce the total repayment amount. Chartered Accountant Nitin Kaushik explains a method that could save borrowers between ₹12 and ₹18 lakh on a home loan of ₹50–60 lakh.

1. Prepayment of home Loan Principal

  • By prepaying part of your home loan principal whenever you have extra funds (bonuses, savings, or windfalls), you can reduce the interest burden substantially.
  • Even small prepayments made regularly can cut years off your loan tenure and save a large sum in interest.

2. Opt for a Shorter Tenure

  • Choosing a shorter loan tenure increases your monthly EMI slightly but reduces total interest paid significantly.
  • Over a long-term loan of 20–25 years, this can lead to savings of several lakhs.

3. Take Advantage of Lower Interest Rates

  • When the RBI cuts repo rates, banks reduce home loan interest rates.
  • Borrowers should opt for floating-rate loans to benefit from these reductions and refinance their loans if needed.

4. Avoid Unnecessary Top-Ups and Delays

  • Top-up loans or delays in prepayments increase the interest burden.
  • Plan loan disbursements carefully and stick to your repayment schedule.

5. Professional Financial Advice

  • Consulting a financial advisor or chartered accountant can help optimize repayment strategy, taking into account EMIs, tenure, and interest rates.

Conclusion

By following these strategies—prepayment, shorter tenure, and taking advantage of rate cuts—homeowners can save ₹12–18 lakh on a ₹50 lakh loan. Smart planning and disciplined repayment can significantly lighten your home loan burden and help achieve financial freedom faster.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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Balasahana Suresh

14/12/2025 07:49 AM