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All About the Home Loan Provisional Certificate

April 02, 2024
All About the Home Loan Provisional Certificate

Repaying a housing loan sooner than anticipated is a goal for many homeowners in India. Doing so not only lifts the financial burden but also saves a significant amount of interest. This article explores the top 7 strategies of how to pay a home loan faster. We'll cover practical tips that can make a substantial difference and help you take a swiffer way to financial freedom.

Tips to Pay Off Home Loan Faster

  • Prioritize loan repayment over investment: If you have extra cash, use it to reduce your debt before focusing on asset creation. Lowering your home loan principal early can save on interest.
  • Choose a lender wisely: Opt for lenders with the lowest interest rates and minimal hidden fees such as administrative charges or penalties.
  • Increase your down payment: While most lending institutions finance up to 85% of a home's value, contributing a higher down payment (e.g., 30% instead of 15%) can lower your EMI or shorten the loan tenure.
  • Maximise your EMI: Select the highest EMI you can afford within your budget to reduce the loan tenure, considering tax benefits that can make larger EMIs more manageable.
  • Utilise windfalls: Windfalls are sudden, unexpected spikes in your earnings, like bonuses and capital gains. You can apply them towards partially prepaying your loan, assuming your agreement permits it.
  • Leverage tax benefits: Make full use of tax deductions available for home loan document repayment under Sections 80C, 24, and 80EE to effectively lower your loan cost.
  • Maintain a strong credit score: A good credit history enables negotiation for lower interest rates, significantly affecting your EMI and overall interest paid on the loan.

Must Read - What is a Home Loan Statement? Why is it Important

Quickest Ways to Pay Off a Home Loan

We will see how to clear home loans faster through strategic financial moves and informed decision-making. Learn how smart planning, making larger payments, and maintaining prepayments can lead to substantial savings on interest and fast-forward your path to home ownership.

Make Use of Home Loan Prepayments

Making extra payments towards your home loan without incurring additional charges can effectively decrease the principal balance. This reduction in the principal amount results in lower interest costs and a shorter loan tenure. A home loan prepayment calculator is a useful tool that helps you determine the impact of making additional payments towards your loan. The calculator can show you how these extra payments can reduce your overall loan tenure and interest costs. This can be a valuable tool in helping you make informed decisions about whether to make prepayments on your home loan to save money in the long run and become debt-free sooner.

Make Larger Monthly Payments

Increasing your monthly payments reduces the principal faster, which in turn decreases the interest amount and shortens the loan tenure. This strategy requires financial discipline but significantly accelerates your path to becoming debt-free.

Utilize Lump Sum Payments

Applying any unexpected lump sum payments, like annual bonuses, inheritance, or tax refunds, directly towards the principal of your home loan can be very effective. Not only does it reduce the total interest you'll end up paying over the life of the loan, but it also shortens the repayment period. This brings you closer to full ownership faster.

Refinance your Home Loan

Refinancing can lower your interest rate, reduce monthly payments, and shorten the loan term if you secure a better deal, making it easier to pay off the loan faster.

Increase EMI with Income Growth

Allocating a portion of your salary hikes or income increases towards raising your EMI payments can help you clear the loan much quicker without significantly impacting your lifestyle.

Must Read - Home Loan Prepayment: Pros, Cons, and Refinancing Options


Accelerating your home loan repayment not only saves you interest but also fast-tracks your path to owning your dream home. Employing strategies like additional payments, refinancing, or leveraging income increases are key to reducing your loan's lifespan.

If your goal is to secure your dream home sooner and with financial smartness, SMFG Grihashakti is here to guide you through. Our tailored home loan solutions and expert advice are designed to match your ambition with action. Eligible applicants can get home loans up to INR 1 crore*, at attractive interest rates with tenures of up to 30 years*. Apply today!


What are the benefits of repaying a home loan faster?

Repaying a home loan faster reduces the total interest paid, shortens the debt period, and frees up financial resources for other investments or savings. This helps increase your financial freedom and peace of mind.

Will making larger payments affect my credit score?

Making larger payments can positively affect your credit score by reducing your debt more quickly and demonstrating financial responsibility to lenders.

How can I calculate the potential savings from making extra payments towards my home loan?

You can calculate potential savings from making extra payments towards your home loan by using an online home loan prepayment calculator. It considers your loan amount, interest rate, and additional payment amount.

Is it better to save or invest extra money instead of using it to repay the home loan faster?

Deciding between saving/investing extra money or using it to repay the home loan faster depends on the loan's interest rate compared to the expected return on investments. If the loan's interest is higher, paying it off might be more beneficial.

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

SMFG India Home Finance Co. Ltd. (Formerly Fullerton India Home Finance Co. Ltd.)
CIN number: U65922TN2010PLC076972

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