Pre Approved Loan

Buying a home is a cherished dream for a large number of Indians and most people take home loan to accomplish this dream. It is quite a fascinating irony about home loan that anyone who aspires to buy home he/she want to avail home loan at the earliest. However, once the person gets the loan, the first priority in his/her life is to repay the loan. If you have availed home loan, prepaying the amount would be one of the most crucial decisions you would make in your life. Some of the important pros of repaying the home loan before the actual duration are discussed below: • One of the most important benefits of prepaying the home loan is that you get cutoff on your interest payment. Not to mention, prepaying home loan would also result in quick reduction of your outstanding principal amount. This in turn, leads to the reduction of the interest accrued on the loan account. For instance, if you have availed home loan for Rs. 10 lakhs at the interest rate of 10%, you would be required to pay Rs. 1 Lakh (approximately) interest per year. If you prepay the loan by Rs. 1 lakh, your interest would reduce from Rs. 1 lakh to Rs. 90 Thousand. Thus, you would save Rs. 10 thousand every year for the whole duration of the loan. • If you wish to prepay your home loan, the housing finance companies generally give you two options. You can either reduce the number of installments you pay or you can reduce the monthly installment amount but keep the number of installments same. For example, if you want to prepay your home loan by Rs. 1 Lakh, you can opt for one of the following options: a) If your original EMI payment is Rs. 10,000 for 120 monhts, you can reduce the tenure to 110 months and continue to pay Rs. 10,000 per month. b) You can keep the original duration as 120 months, but reduce the monthly EMI amount to Rs. 9,500. Thus, you get a saving of Rs. 500 every month. Most of the financial experts suggest the home loan applicants to opt for the second option because it helps the families to lessen their monthly cash outflow and ease the budget. The cash you save every month can be further used to prepay the loan. Indiabulls Housing Finance Limited is one of the leading housing finance companies in India that offers wide range of home loan schemes to suit the budget constraints of different individuals. If you have availed home loan from Indiabulls on floating rate basis, you would not need to pay any prepayment charges for full or partial pre-payment. However, if you have availed a loan on Dual interest basis (fixed and floating) you would have to pay 2% prepayment fees for prepaying any amount during the fixed interest period

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9594111161 / 9967111161
504, 5th Floor Suchita Business Park,
Raigad Chowk, Station Road, Ghatkopar (E), Mumbai 400 077

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