Rs.40 lakh home loan: How much can you save if interest rate falls from 10% to 9% over 10, 20, 30 years?
New Delhi, Oct. 12 -- If you are availing a fresh home loan, even a minor reduction in the applicable interest rates can alter the repayment trajectory of your loan- it can go a long way towards helping you save money, even if the rates are reduced only slightly.
This is because even a minor one-percentage-point reduction in home loan interest rates can reduce a borrower's interest costs over different repayment periods.
For someone taking a Rs.40 lakh home loan, reducing the annual interest rate from 10% to 9% could save them approximately Rs.2.63 lakh over 10 years, Rs.6.27 lakh over 20 years and Rs.10.50 lakh over 30 years.
Such a saving also translates into lower equated monthly instalments (EMIs), thus making the home loan more af...
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