Is My Home Loan Interest and Tenure Justified? Need Opinions

[User_d16dada6]

U

User_d16dada6
PARTICIPANT
March 4, 2025 at 5:50 pm

# Loan Details:

* **Loan Type:** Home Loan (Flat Purchase)
* **Loan Provider:** Private finance company (Changed 3 times)
* **Sanctioned Amount:** ₹8,80,000
* **EMI:** ₹6,942
* **Initial Loan Tenure:** **20 years (240 months)**
* **Current Tenure:** **42 years (505 months)**
* **Interest Rate Changes:**
* **A:** 12% (20 years)
* **B:** 13.5% (23 years)
* **C:** 13.85% (42 years)

# Amount Paid So Far:

* **Principal Repaid:** ₹2,80,354.58
* **Interest Paid:** ₹4,28,249.42

# Major Concerns:

1. **Loan Tenure Increase:** Initially 20 years, now 42 years due to interest rate hikes.
2. **Total Interest Cost:** Despite paying for years, the remaining principal is still around ₹6,00,000, and the estimated total interest over the tenure could go up to ₹26 lakh!
3. **Interest Dominating EMI:** More EMI is going towards interest than principal.
4. **Prepayment Options:** What strategies can reduce this burden?

# Questions for the Community:

* Is this a common issue with private finance companies?
* Can anything be done legally or financially to reduce the loan burden?
* Has anyone successfully negotiated with the lender or switched to a better option?
* Would refinancing with a bank or NBFC be a good choice?

In short: **my loan was for ₹8,80,000, but due to multiple interest rate increases (now at 13.85%), my total repayment amount has drastically increased to ₹35+ lakh, and my tenure has extended to 42 years.**

Share

[Author]

Posts