What are the effects of late payment of home loan EMI? Tips to payoff your loan faster

A home loan is a great way to own the keys to your dream home. But the longer EMI marathons and higher interest charges are the few things that you need to be concerned about.

A delay in home loan EMI payment

The following strategies will help you in your faster home loan repayment:

Pay your EMI's on time to avoid any home loan default and higher interest rate. Following are some strategies that will help you to pay off home loans faster.

  1. A down payment of 20% to 30% on a home loan helps reduce the total amount.
  2. Prepaying a portion of your Housing Loan EMI throughout the loan repayment will lower the principal amount.
  3. If your financial condition allows, you can pay more than one additional EMI every year. You'll be able to pay off your mortgage earlier than expected thanks to this. 
  4. Choose a lender after analyzing the market, comparing the interest rates, and offering lowers rates
  5. Increasing the home loan EMI by 7.5% to 10% annually will help you pay off your mortgage faster.
  6. Take advantage of home loan tax benefits such as Section 80c, section 24(c), and section 80EE.

Related: Questions you must answer before applying for a home loan

If you failed to pay the housing loan EMI:

  • In addition to any applicable taxes, it will be liable to a 2% penalty interest rate. Here is the list of different Home Loan Charges that you should be aware off.
  • It will affect your CIBIL score.
  • The missed payments will also appear on your credit report.

Still worrying about the Home loan EMI pay-offs! 

Watch this video to get a better understanding of home loans, EMI, Subsidies, and Tenure & Repayment of Home loans in detail:

How to avoid a home loan default?

It is usually advisable to pay your EMI's on time to avoid any EMI default. Here are some suggestions for preventing EMI defaults.

  • Utilize Your Reserve Fund
  • leverage the loan against investment to generate money
  • Make your EPF payments in advance
  • Get assistance by Connecting with Your Bank


A home is a secure loan against financial assets and enforcement. It can help in turning your dream of owning a home into a reality by offering convenient monthly payments and the ability to select the loan repayment duration as per your comfort. Hope the above-mentioned tips will help you to repay your EMIs faster and enjoy your lovely time in your dream home. 

Disclaimer: This article is for general information and should not be construed as insurance, investment, tax, or legal advice. You should separately obtain independent advice when making decisions in these areas. Use this EMI strategy to payoff your loan faster. 


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