RBI Repo Rate hike pause: Smart way to close home loan fast

Jun 08, 2023 Rajeev Kumar

As RBI keeps repo rate unchanged, home loan borrowers can take a sigh of relief. They can use this time to prepay and close the loan fast at current rate. Read on to find a smart way

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Banks allow monthly, quarterly, half-yearly or annual prepayment or even at irregular intervals without any charges.

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You can prepay a minimum amount equivalent to one EMI, generally. However, this may vary from bank to bank.

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Make small prepayments as there are no prepayment charges. This will reduce overall interest paid on a loan and help you close it fast.

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By saving just Rs 100 per day for prepayment, you can save about Rs 12 lakh on a Rs 50 lakh loan of 20 years at a 9.5% rate, calculation shows. (Details below)

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Similarly, by paying just 5% of the loan balance every year, a borrower can close a 20-year home loan in just 12 years.

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The minimum amount one can prepay depends on the loan amount and the repayment terms.

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You can prepay as low as Rs 100 without any charges. But, generally, the minimum amount one can prepay would be equal to monthly EMI.’

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Read terms of the loan. In case there is no restriction, raise the issue with the bank or lodge a complain with Banking Ombudsman of RBI.

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RBI Repo Rate hike pause: Smart way to close home loan fast

RBI Repo Rate hike pause: Smart way to close home loan fast

As RBI keeps repo rate unchanged, home loan borrowers can take a sigh of relief. They can use this time to prepay and close the loan fast at current rate. Read on to find a smart way

As RBI keeps repo rate unchanged, home loan borrowers can take a sigh of relief. They can use this time to prepay and close the loan fast at current rate. Read on to find a smart way

Banks allow monthly, quarterly, half-yearly or annual prepayment or even at irregular intervals without any charges.

Banks allow monthly, quarterly, half-yearly or annual prepayment or even at irregular intervals without any charges.

You can prepay a minimum amount equivalent to one EMI, generally. However, this may vary from bank to bank.

You can prepay a minimum amount equivalent to one EMI, generally. However, this may vary from bank to bank.

Make small prepayments as there are no prepayment charges. This will reduce overall interest paid on a loan and help you close it fast.

Make small prepayments as there are no prepayment charges. This will reduce overall interest paid on a loan and help you close it fast.

By saving just Rs 100 per day for prepayment, you can save about Rs 12 lakh on a Rs 50 lakh loan of 20 years at a 9.5% rate, calculation shows. (Details below)

By saving just Rs 100 per day for prepayment, you can save about Rs 12 lakh on a Rs 50 lakh loan of 20 years at a 9.5% rate, calculation shows. (Details below)

Similarly, by paying just 5% of the loan balance every year, a borrower can close a 20-year home loan in just 12 years.

Similarly, by paying just 5% of the loan balance every year, a borrower can close a 20-year home loan in just 12 years.

The minimum amount one can prepay depends on the loan amount and the repayment terms.

The minimum amount one can prepay depends on the loan amount and the repayment terms.

How much can you prepay?

How much can you prepay?

You can prepay as low as Rs 100 without any charges. But, generally, the minimum amount one can prepay would be equal to monthly EMI.’

You can prepay as low as Rs 100 without any charges. But, generally, the minimum amount one can prepay would be equal to monthly EMI.’

Read terms of the loan. In case there is no restriction, raise the issue with the bank or lodge a complain with Banking Ombudsman of RBI.

Read terms of the loan. In case there is no restriction, raise the issue with the bank or lodge a complain with Banking Ombudsman of RBI.

What if bank refuses?

What if bank refuses?