NEWS & ADVICE : HOME LOANS
Pre-pay your home loan
By Neelima Shankar
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Have you taken a home loan to realize your dream of possessing a house but the insecurity of not owning it legally has been bothering you? Then here is an option of loan prepayment that will help you to rid of the loan before the tenure. It is also a nice alternative at a time when the interest rates are on a rising spree.

Loan Pre-payment

Prepayment means a privilege in a mortgage or loan permitting the borrower to make payments in advance of their due date. However the borrower needs to evaluate the consequences of a home loan pre-payment before opting for it. Here are few guidelines that would help you.

First and foremost you need to check the route available to you for making the home loan pre-payment. One can start the prepayment via part repayment where you pay off a certain amount to bring down the level of installments or reduce the number of equated monthly installments (EMIs). However there is a penalty that is charged for pre-paying the loan. Few banks allow a prepayment at zero fees for a certain period but a penalty is levied if one chooses to prepay his loan after this period. So make sure that the part prepayments are made within this period.

Further if you plan to pay a lump-sum amount and prepay the loan at once, the penalty would be high. However if you make partial pre-payment then this charge may be zero. But the definition of partial pre-payment may vary from bank to bank. For instance it can be something where enough pre-payment can be made to ensure that you still need to pay a few more EMIs to completely clear off the loan. This would help you to save on pre-payment penalty along with high interest costs on a significant portion of the loan.


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(Comments Posted : 7) Post Your Comments
1. The Reserve Bank of India abolished prepayment penalty on all floating rate home loans, making life easier for borrowers. For more details, Please visit https://housing.com/in/home-loans/faq/42-can-i-pre-close-my-loan-before-my-home-loan-matures
Sachin (Posted: Oct 20, 2015)
2. Hello my dear people , I am Anita Frank, currently living in New jersey city, USA. I am a widow at the moment with three kids and i was stuck in a financial situation in April 2015 and i needed to refinance and pay my bills. I tried seeking loans from various loan firms both private and corporate but never with success, and most banks declined my credit ,do not full prey to those hoodlums at there that call them self money lender they are all scam , all they want is your money and you well not hear from them again they have done it to me twice before I met Mr. Wilson Edwards the most interesting part of it is that my loan was transfer to me within 74hours so I will advice you to contact Mr. Edwards if you are interested in getting loan and you are sure you can pay him back on time you can contact him via email……… (wilsonedwardsloancompany@gmail.com) No credit check, no co signer with just 2% interest rate and better repayment plans and schedule if you must contact any firm with reference to securing a loan without collateral then contact Mr. Wilson Edwards today for your loan
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Anita Frank (Posted: Aug 5, 2015)
3. Greetings to the entire public,
I am Dr Derek Barlow, I am a man that have come to put away every thought / reason that is virtually in EVERY ONE'S MIND THAT ARE SAYING THAT THERE ARE NO RELIABLE LOAN LENDER'S ONLINE THAT CAN GIVE LOANS AGAIN / ANYMORE. As at now we all know that there are a lot of scammers searching for our legitimate documents to use for fraudulent act, So i Dr Derek Barlow HAS COME TO ANNOUNCE TO THE ENTIRE PUBLIC THAT I HAVE got some money to Lend out to serious,TRUSTWORTHY and Prospective CLIENTS THAT ARE IN NEED OF LOANS,any person/organization who HAVE BEEN LOOKING FOR LOAN or LOANS AND HAVE NOT GOTTEN THE LOAN ON TILL NOW SHOULD send their contact or apply via email: derekbarlowloans@yahoo.com OR derekbarlowloans@gmail.com .Services rendered include; Refinance,Home Improvement,Investment Loan,Auto Loans,Debt Consolidation,Line of Credit,Second Mortgage,Business Loans,Personal Loans,Car Loan,Auto Loan, To mention but a few. AND I HAVE ALSO COME TO TELL THOSE BORROWERS THAT WILL APPLY FOR LOAN AND DO NOT PAY BACK THAT In the book Of Mark 8:36: 36 "For what shall it profit a man, if he shall gain the whole world, and forfeit his own soul?" I REFER YOU TO THE SAID BIBLE REFERENCE THOSE THAT HAS THE MIND OF RUNNING AWAY WITH LOANS THAT HAS BEEN GRANTED TO YOU IN GOOD HEART BECAUSE WE ARE ALL PASSING BY ON EARTH AS WE SHALL MEET OUR MARKER ONE DAY, ALSO GET IT NOTED THAT IF YOUR INTENTIONS IS TO COME AND TAKE ADVANTAGE OF OUR TRUSTWORTHINESS AND RELIABILITY OF GRANTING LOANS ONLINE IN RESPECTIVE OF YOUR LOCATION ON EARTH, I BET YOU YOU WILL BE CAUGHT AS OUR FBI AGENTS ARE ON GUARD. I WILL LIKE TO TELL YOU ALL ALSO THAT I HAVE COME TO WIPE AWAY THOSE TEARS THOSE ONLINE FRAUDSTER / RIP OFF ARTIST HAVE CAUSED TO YOU ALL IN THE NAME THAT THEY ARE LOAN LENDERS. SO THOSE IN NEED OF THIS LOAN FIRM SERVICES SHOULD SEND THERE CONTACTS TO ONE OF THE ABOVE EMAIL ADDRESS FOR URGENT ATTENTION. AND ALSO I WANT TO LET THOSE THAT HAVE BEEN SCAMMED BEFORE NOT TO COMPARE THIS LOAN FIRM SERVICES WITH THE PREVIOUS ONE THEY ENCOUNTERED THERE SELF WITH IN THE PAST !! NOTE: YOU THAT IS ABOUT TO APPLY FOR THIS LOAN MUST HAVE Trust,Courage,Faith.BECAUSE THEY ARE THE KEY TO ANY TRANSACTION IN THIS WORLD !! AND IF YOU DO NOT HAVE THEM PLEASE AND PLEASE DON'T APPLY AS WE ONLY NEED SERIOUS MINDED CUSTOMERS HERE THAT ARE READY AND SERIOUS TO COMPLY WITH THE PROCESS OF THIS LOAN TRANSACTION WITHOUT GIVEN US ROOM TO SUSPECT THAT THEY FRAUDSTERS / ON-SERIOUS CUSTOMERS.
Derek Barlow (Posted: Jul 31, 2015)
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