Personal Loan Or Home Loan, Which Loan You Should Close First, See Here

Loan Repayment Suggestions: We are surrounded by various types of loans like home loan, car loan, personal loan. Either we ourselves are in the trap of these loans or there are some of our acquaintances, relatives or friends who are in the trap of any of these loans. Many times it also happens that the same person is taking two or three types of loans and they have to decide which loan should be settled first so that their money going as EMI can be reduced a bit.

Learn the right advice from financial market experts
Here we will tell you that in such a situation, which loan you should think about first, so that the salary coming after deducting the EMI on the house can increase slightly. In consultation with financial market experts, information has been given about which loan should be terminated first out of large loan or high loan.

Pay off high-cost loans first
Usually people keep thinking about settling big loans like home, car-auto loans, but according to economic experts, instead of settling long-term loans, you should focus on what are the high cost loans whose EMI or You have to spend more on interest.

understand simply
To put it simply, you should think about clearing your credit card dues and personal loan first. Secured loans like home loans and car loans can be repaid gradually. According to financial planners, the size of the loan does not matter as much as the cost of the loan.

Learn it completely by example
Suppose you have got a performance bonus of Rs 1 lakh from the company and you have two loans of Rs 1 lakh each. You have to pay 18 percent interest on the first loan and 8.5 percent interest on the second. If you prepay the loan with 18 per cent interest, then you will be able to save Rs 10016 in the amount known as interest for your 12 months. On the other hand, if you repay the second loan first, then in 12 months you will be able to save only Rs 4664 on the interest paid on it.

Always pay off your credit card outstanding and personal loans first as they eat into your earnings. Normally a person’s income grows at the rate of 8 or percent and non-payment of high cost loan does not allow you to get the benefit of your money growth.

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