How to Repay and Save On Home Loans?
To clear up the loan, the banks have also started offering the prepay system. Under this system, one can deposit an additional amount into his/her account and this in turn will cut short the loan tenure and the interest on the loan amount. Loans can also be linked with the salary account, so that the banks can withdraw the specific amount from the account and the EMIs won’t get disrupted.
Prepaying the loan also has some other advantages; it offers the withdrawal of the surplus amount, if required. However, this might reduce the benefit of lower interest rates on prepaying discussed above. This offer can be obtained at the cost of 25-50 basis points which is comparatively higher than the regular home loans.
This offer is available with most of the banks in India; HSBC’s ‘Smart Home’, SBI’s ‘SBI Max Gain’ and Standard Chartered Bank’s ‘Home Saver’ and ‘Home Credit’ are some the prepay offers.