If you want to repay home loan in half the time, then try these methods

Updated: 19-11-2025, 02.52 AM

What is the news?

Home loan is available to buy or build a house, but it is costly to repay it. Most loans are for a tenure of 20 years. By paying EMI for such a long time, all your savings are spent on this and you also have to pay heavy interest. In such a situation, the best way is to repay the loan in the shortest time. Let us know in what ways the loan tenure can be reduced.

pre-payment

When will pre-payment be beneficial?

Pre-payment: In the first 5-7 years of the loan, most of the EMI goes towards interest and the principal amount does not reduce much. Therefore, some money can be deposited as pre-payment in the initial years, which reduces the loan tenure. The benefit of pretreatment is less in 12-15 years.
Extra EMI: Paying an extra EMI every year in addition to the regular installments can reduce the loan tenure by up to 3.5 years.

Do this work when your income increases

Annual Step-up: Increase EMI by 5 percent every year as income increases. This is called step-up. This will also reduce the payment period. If you do both, one extra EMI every year and an annual step-up of 5 per cent, you can reduce the loan tenure to around 11 years. Before the loan is approved, ask for a full cost breakup so that you can know the charges and choose the insurance plan as per your choice.