Congratulations on buying your property! Amidst all the celebration, you must realise that you have just made a huge commitment, and the new responsibility of servicing the loan will continue for some time. In this article, we’ve compiled a list of things you need to remember as the months pass ahead.
- Timely repayments: Please ensure that there is always enough balance in your account for the EMIs. A single defaulted payment comes at a heavy price: not only in financial terms, but it will also impact your CIBIL score.
- Pre-pay as and when possible: We encourage our customers to get rid of their home loan burden faster. Remember, whatever you pre-pay will directly go towards reducing your principal. In fact, just to make it easier, RBI has also removed any charges on prepayments.
- Take advantage of tax benefits: There are several tax benefits available under Section 24 and Section 80 C of the Income tax Act, which will help you save on the interest and principal amount repaid.
- Tenure reduction is better than EMI reduction: If you opt to reduce your EMI amount after pre-paying some part of the loan, you end up paying more interest. If it’s possible, try to pay the same EMI, as its higher amount every month will reduce your tenure and save a sizable amount on your interest payments.
- Paperwork is important: Don’t lose your documents like sanction letters, loan agreements, and so on. Until your loan has been fully repaid, make sure all your paperwork is in order, and that you have all the details of the repayment records. Once your loan account is closed, make sure you get a letter from us saying that your loan has been repaid in full and you are in possession of the original property documents.