Maximize Diwali Bonus: Home Loan Benefits 2023

Home Loan Pre Payment Tips: This time with the bonus on Diwali, you can get rid of your home loan burden and become debt-free soon. You can also avoid high-interest rates by prepaying a home loan. Today we will tell you how to get rid of debt quickly by using the Diwali bonus effectively. Read the full story.

Diwali is a festival of happiness as well as happiness. People celebrate Diwali by giving gifts and sweets to each other. If you work somewhere, you are also given a Diwali bonus during Diwali.

If you have taken a home loan, then instead of spending the Diwali bonus received this Diwali, you can use it for prepayment of your home loan. Today we will tell you how you can get rid of debt quickly by using the Diwali bonus effectively.

How to use the Diwali bonus?

Financial Evaluation: Evaluate your financial situation before prepaying a home loan with a Diwali bonus. If you have some other financial responsibilities then you should use your Diwali bonus there.

Calculate the prepayment amount: You can contact your bank for information about the prepayment amount of the loan, and how much amount you can prepay for your home loan. Apart from this, you can decide from your Diwali bonus how much you have to spend for home loan prepayment.

Take advantage of tax benefits: To maximize your tax benefits, you can plan for home loan prepayment in such a way that you can avail of both Section 24 and Section 80 of income tax.

Keep all the documents related to prepayment of the home loan along with interest and principal in one place to claim deduction at the time of tax filing.

Contact the bank for a lower interest rate on an existing loan: You can talk to your bank to reduce the interest rate of your existing home loan. If your interest rate is low then you will get rid of paying more interest during the loan tenure.

Don’t ignore these things

1. The more you prepay, the more you save on interest so that you can get rid of the debt burden quickly.

2. By paying your home loan ahead of time, you can reduce the loan tenure.

3. By completing a home loan on time or ahead of time, you can strengthen both your credit score and credit history.

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