Lakhs of rupees can be saved with the help of these two tips.
Today’s generation’s life is passing with the help of EMI. Whether to buy a car, get a house, plan a vacation or buy any luxury item including mobile, laptop. With the help of credit cards and loans, all the work gets done, but the burden of EMI increases significantly. In such a situation, it is important for you to know how much extra you have to pay in the case of EMI. Even more important is how to reduce this burden. Let us understand some things for this.
If all these things are done with the right planning, then you can save thousands of rupees every month. When you take any kind of loan, study the EMI closely. During this you will find that the EMI amount is divided into two parts. One part is interest repayment, while the other part is principal amount repayment. Initially, on repaying the EMI for any loan, a large part goes as interest, while a small part goes towards repaying the principal amount. Gradually the loan gets old and a higher part of the EMI goes towards principal repayment, while the interest repayment amount comes down.
Extra amount depends on loan tenure
How much of the EMI will be deposited in the principal amount repayment and how much will be deposited in the interest repayment depends on your loan tenure. In such a situation, if you want to pay less as interest, then keep the tenure of the loan as low as possible, this will definitely increase the EMI but your savings will be very high.
Either pay the extra EMI or increase the EMI amount every year
If it is difficult for you to reduce the loan tenure as it increases the EMI burden significantly, then you have two options which can be used. The first option is to deposit one EMI extra every year. Meaning, deposit 13 EMIs in 12 months. Another option is to increase the EMI by 2 per cent every year. As your income increases over time, you can increase the EMI amount every year accordingly. With the help of these two tricks, you can save up to lakhs of rupees.
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