PNB Housing Loan provides a lucrative opportunity to own your dream home sooner. Extensive loan tenure of up to 30 years keeps EMIs easily manageable without stressing the monthly budget. However, with correct budgeting and planning, it’s possible to pay off the loan early, save a significant amount on the interest charges, and gain financial independence sooner. Are you looking to finish your 20-year PNB home loan tenure in 10 years? Here are a few practical ways to make it happen.
- Increase the EMI Amount
Increasing the EMI amount is an effective way to pay off the loan sooner. The more you pay each month, the earlier you will become debt-free. The strategy works best for those who have a home loan with a floating interest rate. PNB Housing does not charge any prepayment penalties from such borrowers. Those with a fixed rate PNB loan are also exempt from prepayment charges, provided they prepay the loan from their own sources. So, start paying some extra amount each month, keep it constant, and pay off the loan sooner.
- Pay Extra Lump Sum Whenever Possible
Making an extra payment whenever possible is another way of closing off the loan earlier. It is a one-time upfront payment that helps close off the loan early and save a considerable amount on the interest outgo. No prepayment charges on PNB Housing Loan make this a lucrative option for borrowers.
Paying an extra lump sum is a convenient way of shortening the loan term. For instance, whenever you get a performance bonus, a hereditary gift, or an investment return, use it to make an extra lump sum payment towards the home loan and reduce its loan term.
- Shorten the Loan Tenure
Full loan prepayment is an efficient way to pay off the loan and shorten the loan tenure. It works perfectly when you have extra cash you don’t require for a long time. It is also a good idea when the cash flow is insufficient to make additional monthly payments. However, before prepaying the loan in full, refer to PNB housing finance customer feedback or talk to the customer care center to know the rules and charges. Shortening the loan tenure is possible in either of the two ways: refinance the loan with a shorter loan tenure or make extra monthly payments.
Before opting for a shorter loan term, remember that shortening the loan term will increase the EMI amount. So, ensure you can afford them before revising the loan tenure. This step will be an excellent way to save money and become debt-free earlier. The key is to stay prepared for higher monthly payments.
- Debt Consolidation
Debt consolidation is a rewarding option for those who handle multiple loans simultaneously. Consolidating the current loans into one bigger loan helps pay them off sooner, reducing the interest cost on each loan separately. After debt consolidation, the borrowers pay off all their existing loans and get a new loan with a revised loan tenure and EMI amount to handle each month. Since PNB Housing Home Loan is a long-term loan, repaying it sooner will relieve a significant burden on your finances and mind.
Undoubtedly, paying off a 20-year PNB home loan tenure in 10 years will save considerable interest. But how to do it? The most effective method is to make an extra payment whenever possible. Make additional payments to the regular EMIs and reduce the principal loan amount to pay. Another option is to consolidate debt and pay off the loan sooner. Whichever strategy you choose, stick to it and follow it consistently to save money and relieve the loan burden.