Starting a new financial year offers a strategic chance for home loan borrowers to reconsider their financing strategy and optimize financial gains. Home loan interest rates have stayed somewhat steady since the Reserve Bank of India (RBI) kept the repo rate at 6.5% from February 2023, allowing consumers to effectively arrange their long-term investments. This time presents a great opportunity for both new and current homeowners to take advantage of current financial advantages and lower their whole loan amount & tenure.
A reputable loan provider in Pune, Dravyam Fintech thinks that home loan administration depends critically on well educated decisions. Adopting sensible financial techniques helps borrowers greatly lower interest rates, shorten loan terms, and strengthen their general financial situation.
Understanding the Current Home Loan Landscape
The home loan market in India has grown steadily in recent years. As of December 2023, the outstanding housing credit portfolio of the Reserve Bank of India (RBI) shows to be about ₹20.5 lakh crore, therefore highlighting the constant demand for homes. Driven by financial security and long-term investment ambitions, certain surveys indicate that 67% of the Indian urban purchasers now give homeownership first priority. Stable interest rates and good market conditions help borrowers to maximize their home loan options during the new financial year.
Three Proven Ways to Maximize Home Loan Benefits
Here are practical and result-driven strategies to help borrowers gain the most from their home loans:
- Opt for a Home Loan Balance Transfer
By moving their remaining loan balance to another lender with a better interest rate, a home loan balance transfer lets borrowers By choosing a more competitive lender like Dravyam Fintech, customers can greatly lower their Equated Monthly Installments (EMIs), given house loan rates as low as 8.3% in 2024.
By choosing a balance transfer to a lower-rate loan, a borrower with a ₹50 lakh loan at 9% for 20 years may perhaps save over ₹6.5 lakh in interest. Before switching, though, borrowers should take processing fees and transfer charges under some thought. - Leverage Tax Benefits Under Section 80C and 24(b)
Reducing home loan expenses depends much on tax incentives. Borrowers can claim deductions of up to ₹1.5 lakh annually on the principle repaid under Section 80C of the Income Tax Act, 1961. On the interest component, they can also claim up to ₹2 lakh annually under Section 24(b). This mix lets borrowers save up to ₹3.5 lakh yearly, hence lowering the financial load of owning a house. - Make Periodic Prepayments
Regular prepayments are another great method to cut interest expenses. Using annual bonuses, tax returns, or other surplus income, borrowers can lower their principal balance, therefore reducing the total interest owing.
For a ₹50 lakh loan at 8.5% interest, for example, making an annual prepayment of ₹1 lakh may save up to ₹8.4 lakh in interest throughout the loan term. Furthermore, as the RBI forbids prepayment penalties on floating-rate loans, borrowers can maximize savings free from extra expenses.
Why Choose Dravyam Fintech?
As a leading home loan provider in Pune, India, Dravyam Fintech is committed to helping homeowners secure affordable and flexible loan solutions. Our offerings include:
- Competitive interest rates to reduce EMI burdens.
- Tailored repayment options aligned with income growth.
- Expert financial guidance for better long-term planning.
The new financial year is the ideal occasion to review your approach toward your house loan. Dravyam Fintech can assist you make better financial selections whether your goals are loan transfer, debt reduction, or reorganization of your repayment schedule.
