How to reduce your housing loan?

Do you have a housing loan? Are you desperate to reduce your interest burden? Do you want to repay your loan faster?

Check if your housing loan is under floating rate of interest?  If yes, then ask your banker/lender, to reduce the interest rate to the current rate. Because, the bank interest rates came down recently during the COVID-19 situation.

Though the banks say it is floating rate of interest, they seldom reduce the rates on their own. It needs a request from the borrower to reduce the interest. Many borrowers are not aware of this fact. They will continue to pay their existing higher interest rates.

So, please approach your bank and check the latest interest rates if you have signed up for a floating rate of interest. When approached, most of the banks/lenders will tell you the procedure to be followed. You may have to submit a requisition letter, for most of the banks. Once done, the Bank will reduce the interest rates. By doing so, your EMI amount will come down or the number of EMIs (loan tenure) will get reduced.

I did this, regularly, with LIC Housing Finance Limited (LICHFL). They always obliged to reduce the interest rate. It helped me to finish my housing loan faster.

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