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5 key steps you need to take while prepaying your home loan.They would reduce the total amount of home loan interest you pay. Subscribe: https://www.youtube.com/channel/UCQTqvgT_qzPZn1D1bHsxtKw?sub_confirmation=1 Visit YouTube channel: https://www.youtube.com/c/FundooMoneyWorld Share Video: https://youtu.be/BNTY4PqVemg Welcome to FundooMoney, your 24X7 buddy on all your money matters! The longer you take to repay your home loan, more interest you pay. That’s why it is always a smart idea to prepay it before the end of the home loan tenure. Wondering how to go about home loan prepayment? We will give you a five step plan very shortly. Avoid prepayment penalty You need to avoid any prepayment penalty on your home loan. Typically, there is no prepayment penalty on floating rate home loan. However, a fixed rate home loan may have a penalty. In a hybrid loan, typically with a fixed interest rate period upfront, it is better that you see off that period and prepay when the floating rate period starts. Chose suitable prepayment method You have to save for an entire year and make an annual partial prepayment. Else you can request the lender to bring down the tenure of the loan by increasing your EMI to a level which you can afford for faster loan repayment. Invest in better return alternatives Home loan comes with tax advantages under Section 80C for home loan principal repayment and Section 24 for home loan interest payment. Some people prefer investing their surplus to generate higher returns after tax with which they hope to later prerepay their home loan. However, this route makes sense for savvy individuals who rarely falter with their investments. Go for periodic partial prepayments For many, it would be difficult to pay off the loan at one go. They might be better served by making successive partial prepayments to reduce the outstanding home loan amount and try to accelerate the home loan repayment. We hope you found this useful. Got a smart tip on home loan prepayment? Why don’t you share it with us and others on this channel in the comments section? For more such actionable personal finance information, subscribe to our channel. Also, visit our website, download our mobile app and stay connected with us on Instagram, Pinterest and Slideshare.