- This topic has 11 replies, 6 voices, and was last updated 1 year, 3 months ago by
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PDid you pay any money towards principal reduction..then you have a case else you will need to check why they did not do it.
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EFollow escalation matrix. My BOI people are good nowadays after I escalated many things in the past
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SYou can just always pay more voluntarily without needing modification in loan terms (after the initial 6 months have passed).
It you want it to be automatic like EMI, just add a new standing instruction from your account to deposit to loan account.
And, this is better, as it is easy to increase EMI to reduce tenure, but difficult to decrease EMI to increase tenure.
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EThank you, will keep in mind and yes my loan is an year old. I am allowed to do only 3 prepayment a year so automatic wont work i guess
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SI am not sure if limiting to 3 prepayments is in line with RBI rules.
What most people do is that every 12 months or sometimes every 6 months, they pay extra emi. So you are paying 13 or 14 emi in a year.
That itself reduces the term drastically.Take an excel sheet and do the calculations.
I would recommend you not to increase EMI, and pay voluntarily (needs more discipline). Do a separate standing instruction to keep the money aside and use it for extra EMI. It is very easy to end with a surplus at year-end, but difficult to have it every month. Think that you could loose a job for a couple of months, or have an emergency need of cash.
1 extra EMI yearly will reduce your loan by around 3-3.5Y, amd 2 emis will reduce it by around 6-7 years if it is a 9% interest home loan.
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