How to Complete Your 20-Year PNB Home Loan Term in 10 Years

The PNB Home Loan offers a lucrative opportunity to own your dream home sooner. The long loan term of up to 30 years makes it easy to manage EMIs without burdening the monthly budget. However, with proper budgeting and planning, it is possible to pay off the loan sooner, save a significant amount on interest charges, and gain financial independence faster. Are you looking to complete your 20s PNB real estate loan mandate in 10 years? Here are some practical ways to achieve this.

  1. Increase EMI amount

Increasing the EMI amount is an effective way to repay the loan sooner. The more you pay each month, the sooner you will be debt free. The strategy works best for those who have a home loan with a variable interest rate. PNB Housing does not impose any prepayment penalty on these borrowers. Those with a fixed rate PNB loan are also exempt from prepayment charges, provided they prepay the loan from their own sources. So start paying an extra amount each month, keep it constant, and pay off the loan sooner.

  1. Pay an additional lump sum whenever possible

Making an extra payment whenever possible is another way to close the loan early. This is a one-time upfront payment that allows the loan to be closed sooner and saves a considerable amount on interest expenses. No prepayment charges on the PNB housing loan making it a lucrative option for borrowers.

Paying an additional lump sum is a convenient way to shorten the term of the loan. For example, each time you receive a performance bonus, hereditary donation or return on investment, use it to make an additional lump sum payment for the home loan and reduce its loan term.

  1. Shorten the term of the loan

Full prepayment of the loan is an effective way to repay the loan and shorten the term of the loan. It works great when you have extra cash that you don’t need for a long time. It is also a good idea when there is insufficient cash to make additional monthly payments. However, before prepaying the entire loan, consult PNB Housing Finance Client Feedback or speak to the Customer Service Center for rules and fees. It is possible to shorten the loan term in two ways: refinance the loan with a shorter loan term or make additional monthly payments.

Before opting for a shorter loan term, keep in mind that shortening the loan term will increase the EMI amount. So make sure you can afford it before revising the term of the loan. This step will be a great way to save money and get out of debt sooner. The key is to stay prepared for higher monthly payments.

  1. Debt Consolidation

Debt consolidation is a rewarding option for those managing multiple loans simultaneously. Consolidating existing loans into one larger loan allows them to be paid off more quickly, reducing interest charges on each loan separately. After debt consolidation, borrowers pay off all their existing loans and get a new loan with a revised loan term and EMI amount to manage each month. Since the PNB Housing home loan is a long-term loan, paying it off sooner will greatly ease your finances and your mind.

Undoubtedly, paying off a 20-year PNB home loan in 10 years will save considerable interest. But how to do it? The most effective method is to make an additional payment whenever possible. Make additional payments to regular EMIs and reduce the principal loan amount payable. Another option is to consolidate the debt and repay the loan early. Whatever strategy you choose, stick to it and follow it consistently to save money and ease the burden of loans.

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