Paying off a property loan may seem like an arduous task at first. It probably feels like that because loan repayment demands a long tenure and the stress of sticking to monthly payments. But when you have a loan to repay, a calm head and a clear strategy always help!
Firstly, the bank gave you the loan after being thorough about your purchasing & repaying power. So if you ever feel a little stressed about paying it back – don’t worry! You’ve got this! And to make things just a little simpler for you, we’ve got a few tips that’ll help you pay off your loan slightly faster. So here goes:
1- Go all-in with your windfall gains!
So you just got a bonus this year? Well, you know what you should do? Don’t spend it on a new car or something that you don’t genuinely need, but instead, use it as an extra payment to chip away at your total outstanding amount. Even a small amount of Rs.10,000 may seem too small at first, but in the long run, it makes a huge difference!
2 – Increase your EMIs after a promotion:
That’s true! A promotion provides you with extra income that you must channel towards paying off the property loan. For example, if you earn Rs. 50,000 a month and after being promoted, you’re now earning Rs. 75,000, then keep aside Rs. 15,000 from the extra Rs. 25,000 that you’ll now be making.
3 -Try a bi-weekly payment
Well, this one is easy, we usually pay our EMIs once a month. But now, you can divide the monthly EMI and pay it off every two weeks as well. At first, you may not notice a huge difference in the payment, but if you look closely, there are in all 52 weeks in a year. And a biweekly payment schedule will enable you to pay in 13 full-sized payments of the 12. Hence, you’ll be making an extra payment almost invariably! This way, in the long run, you can pay off the loan a few months early or even a year soon.
So there you go! These tips are simple but can make a big difference to your overall payment strategy and save you a lot of time and money in the long run. We hope you make the best out of your new property!
Speaking of it, if you are looking for a premium, new commercial office for sale in Shivajinagar, Pune or commercial spaces for sale in Bhosale Nagar, then explore VB Capitol. Its magnificent P+11 tower is equipped with a top-of-the-line business amenities. You can make your purchases by choosing the flexible loan schemes by ICICI Bank.