Hey All,
I talked about my interest of doing a part payment for my recent Home Loan and according to the math that I did it is going to save me around ₹40L ($47K) in Interest. You can read that post here - Home Loan Trap? Not Anymore! How I’m Cutting ₹40L ($47K) in Interest...My Plan Ahead.... Past two days was bank holidays here in India due to Eid and closure of the books so I had a plan to execute all what I had today itself. One thing that I have learnt with experience is that without execution and just having a plan is of no use and its not getting you anywhere simply waste of time. Have a plan just go ahead and execute it to see the results. As you can from the above image I still have 198 Months of EMI [Equated Monthly Installment] to paid and I am shedding around Rs. 72K+ every month. Today I visited the my bank and as planned gave them the prepayment check of Rs.20 Lakhs which is close to $24K+ dollars and my hope with that with this pre-payment I should be able to SAVE almost 75+ EMI meaning I wouldn't need to pay them as I plan to decrease my home loan tenure keeping the EMI same. Which results into saving more than Rs.50 lakhs and if I minus the interest that I would be paying where I had these funds parked then also I am at net profit which was beyond my imagination.
The Conclusion
I now await from the bank side to credit my home loan account with the pre-payment done and reduce my principal amount. Upon enquiring with them they said it will take three days and I also had to the positive cheque pay confirming that the cheque which I have drawn in favor of "HBDF BANK LTD" is via me only and bank has the right to clear it once I confirm via the net banking process. So as soon as I reached home, I did confirm the positive cheque pay and I guess my bank account where I have funds would be debited by tomorrow and by day after tomorrow my HDF Home loan account tenure should be reduced and ultimately saving me ₹40L ($47K) in Interest...I just hope there are no last minute surprises here and everything executes as plan and then I would be more than happy to have created this Home Loan interest saving plan and executing it successfully. Lets see how things pan out in a day or two and I will report back with the status. And well this should be it for todays post on - "Home Loan Trap? Not Anymore! Part 2 - Executed the PLAN - Now awaiting FINAL OUTCOME..." What do you all SAY about my plan on - "Home Loan Prepayment Plan - How it can SAVE me almost 4 Million INR roughly $47K Dollars - Lets Explore..."
#HomeLoan #LoanRepayment #PrepaymentStrategy #EMISavings #HomeSaverLoan #LoanTenureReduction #FinancialPlanning
Best Regards
Paras