- 1 5 Ways to Pay Off your Loan Against Property Early
5 Ways to Pay Off your Loan Against Property Early
If you are going to pledge your property to meet any of the urgent or higher amount-based needs, it also becomes important to get your property back.
How can you do that? You can do that by repaying your loan against property early by implementing some easy-to-follow tips.
The loan against property is a long-term financial facility that may let you pay smaller EMIs over a longer tenure. But, that would also mean loan obligation for long and paying more interest. And the most important part – your property will be with your lender.
Hence, to pay off your loan against property fast and easier, we are back with some quick tips. Read on!
Easy Tips to Pay off your Loan Against Property Fast
Pay Increased EMI
Paying a higher loan EMI is one of the finest ways to pay off not only the loan against property but any loan faster. It will also guarantee that you can pay off your loan before the loan tenure ends. As a result, when you decide to pay higher EMIs, you technically end up shaving off a number of months and years from the loan period. To be able to increase your EMI amount, you should plan early. You can do that by investing your money into smart investment schemes before applying for the Loan Against Property.
Manage your Funds Smartly
You may have invested your money in diverse vehicles, and it may also mean having the money stuck for a period. However, you may know that not all such tools are good enough to offer you the desired return on investment. Hence, what you can do is close all such irrelevant investments and pool the money towards the Loan Against Property EMIs. Yes, you can make some prepayments from time to time which will help you reduce the principal and EMI considerably. Nowadays, almost all leading banks and non-banking finance companies (NBFCs) don’t charge any amount for prepayments.
Go for Prepayment
Salaried people are entitled to an increase in their income once yearly along with the performance bonus. You can easily use the bonus amount that you get from your company and make some partial prepayment. This way, you can bring down the principal, and it will help you enjoy paying lower EMIs as well.
Switch your Loan Against Property Account to a Lender offering a Lower Interest Rates
Do you think that despite all discussed efforts, you won’t pay off the loan against property quickly? It may be because of the higher interest rate. Hence, the best way to bring it down and to pay off the loan fast, it would be better to switch the loan. The facility is known as the loan balance transfer. You get to transfer the loan amount from your existing lender to the one offering a lower loan against property interest rate. You may also have to pay some processing fee to your existing lender for switching the loan. Hence, you should always check if the processing charge is more than what you will save or not. In that case, it is worth staying with your current lender.
Use Online Loan Calculators
Many loan providers offer you with the facility of the online loan calculators to help you know how much you can afford. You can come to know about multiple verticals of the loan via it. This way, you can decide how much you can sustain and how long will it take to repay it. Thus, even before applying for it, you can make arrangements for the swift repayment of the Loan Against Property.
Additional Read: You can get in trouble for paying loan off early?
Some of the easy measures to help you pay off your loan against property and other loans are now revealed. You can assess your condition and opt for a method as per your financial capacity. You can unlock your pre-approved loan offers by providing a few basic details such as your name and mobile number.
Bajaj Finserv offers some incredible pre-approved offers on loan against property, home loans, personal loans and more. It is intended to make your loan processing fast and easy.