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  • Banking Final

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    Anand Jain
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    This article discusses ways to reduce the burden of a home loan as interest rates increase over time. It recommends making prepayments, increasing EMI amounts, extending the loan tenure, renegotiating the loan terms, or refinancing the loan. Specifically, it shows that by increasing the EMI by Rs. 5,815 or making a part payment of Rs. 5.48 lakh, one can significantly reduce the total interest paid on a Rs. 40 lakh home loan over 20 years.

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    This article discusses ways to reduce the burden of a home loan as interest rates increase over time. It recommends making prepayments, increasing EMI amounts, extending the loan tenure, renegotiating the loan terms, or refinancing the loan. Specifically, it shows that by increasing the EMI by Rs. 5,815 or making a part payment of Rs. 5.48 lakh, one can significantly reduce the total interest paid on a Rs. 40 lakh home loan over 20 years.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    8 views3 pages

    Banking Final

    Uploaded by

    Anand Jain
    This article discusses ways to reduce the burden of a home loan as interest rates increase over time. It recommends making prepayments, increasing EMI amounts, extending the loan tenure, renegotiating the loan terms, or refinancing the loan. Specifically, it shows that by increasing the EMI by Rs. 5,815 or making a part payment of Rs. 5.48 lakh, one can significantly reduce the total interest paid on a Rs. 40 lakh home loan over 20 years.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Reduce your home loan BURDEN

    Article- Tmes Of India Page No.20 Date-29th August 2011 Presented by, Anand Jain Roll No.74

    Introduction
    A. Interest rates increase from 8% to 12% B. Ways to reduce your home loan burden
    Make prepayment Hike EMI amount Extend loan tenure Renegotiate loan Refinance the loan

    Loan amount : 40 lakh 9.5% Aug 2010

    Intrest rate : 9% 10.25% Dec 2010 10.50% Feb 2011

    Tenure: 20 Year 10.75% Mar 2011

    EMI : 35,989 11.25% Aug 2011

    Increase EMI amount by Rs.5815


    37,268 39,201 39,851 40,503 41,805

    Makes part payment of Rs. 5.48 lakh


    1,36, 214 1,87,883 58,917 57,179 1,07,902

    Extend loan by over 20 year


    22-3 year 27-9 year 30-11 year 36-9 year Not Possible

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