Hi,
i bought a house in Delhi for which i took home loan for 27 Lakhs for 20Years 10.5% from Central bank of India. My EMI is 27K/Month.
when i did the repayment calculation , it gave me jitters to see that i will be repaying 37Lakhs in interest only:bab (59):.
i have paid my EMI's for last 2 years now and did some calculations and saw that if i increase my EMI from 27K/month to 34K/month my repayment term reduces from 20years to 10 years and i save 18Lakhs in the interest.

second, what would be the situation if i pay 2-3 Lakhs as pre payment every year, will that give me any better benefit than the earlier option.

I am ready to increase my EMI from 27K(currently) to max 35K(in future)
I am also open to pay a lumpsum of 2-3Lakh per year as prepayment.
I am open for a small investment option , Down payment (2-4 Lakhs) and then EMI of 7K-10K) if this gives me better yield.

Kindly suggest as i cant sit and think that i have to pay 37Lakhs in interest only in 20years Tenure.

regards,
Siddhartha
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  • Originally Posted by siddharrtha
    Hi,
    i bought a house in Delhi for which i took home loan for 27 Lakhs for 20Years 10.5% from Central bank of India. My EMI is 27K/Month.
    when i did the repayment calculation , it gave me jitters to see that i will be repaying 37Lakhs in interest only:bab (59):.
    i have paid my EMI's for last 2 years now and did some calculations and saw that if i increase my EMI from 27K/month to 34K/month my repayment term reduces from 20years to 10 years and i save 18Lakhs in the interest.

    second, what would be the situation if i pay 2-3 Lakhs as pre payment every year, will that give me any better benefit than the earlier option.

    I am ready to increase my EMI from 27K(currently) to max 35K(in future)
    I am also open to pay a lumpsum of 2-3Lakh per year as prepayment.
    I am open for a small investment option , Down payment (2-4 Lakhs) and then EMI of 7K-10K) if this gives me better yield.

    Kindly suggest as i cant sit and think that i have to pay 37Lakhs in interest only in 20years Tenure.

    regards,
    Siddhartha



    Then in that case prepay the loan as much as you can. Most of mortgage loans are closed much much in advance than actual tenor. People keep EMI at comfortable levels and keep prepaying the loan and foreclosing, this saves them interest and prepayment when funds are available. Rest if you take large loan for house then you need to pay interest, cannot help. Hope this helps.
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