Home Loans

Found your fantasy house but struggling with the price tag? We can help with Home Loans designed for your needs. Our low interest rates and easy EMI plans can help unlock the door to your future.

Loan Against Property

Our Loans Against Property can help you through life’s biggest moments. Weddings, personal passions, educational fees or career changes - we’ve got you covered. Refinance any existing commercial or residential property at the best rates today.

Balance Transfer

With our Balance Transfer option you can transfer your existing home loan to Godrej and enjoy the benefits of a plan that works for you. Along with interest rates tailored to your comfort, enjoy higher eligibility, along with a Top-Up loan, to take care of your extra needs.

Plot Loans

Found the perfect spot to build your future? Our Plot Loans can help make it yours. Our loans offer you the financial help, low interest rates and flexible payment options you need to construct the home of your dreams.

Business Loans

We give you the courage to take that next step that your business needs. Godrej Capital Business Loans empower you with customizable financing solutions to grow your business to the next level!

Commercial Property Loans

Take your business to the next level with a Commercial Property Loan that finances construction, extension or improvement to make your business goals become reality. With plans designed for your life, you can rest assured that your business empire is in safe hands.


Smart Ways to Prepay Home Loan

If you availed of a home loan and want to close it before its tenure, home loan prepayment can be a prudent way to do so. Not only does it help close your loan faster, but also saves on the interest outgo. There are several ways to prepay a home loan. What are these? Let’s find out.


Increase the EMIs

A smart way for home loan prepayment is to increase the EMI by a certain percentage annually. Young borrowers, relatively early in their careers, have little choice when it comes to paying EMIs for an extended tenure to keep them reasonable. However, with a gradual increase in income, they can look forward to exercising this option whereby the EMI amount is increased by a certain percentage every year. This can cut the loan tenure drastically and close it faster.


For instance, an INR 50 lakh loan taken on the interest of 7% for 20 years will require you to pay an EMI of INR 38,765. If you increase the EMI by 10% every year, the loan will end in 9 years and 11 months. If you increase it by 5% every year, it will end in 12 years and 6 months.


Do consult with your lender if there is a provision to increase the EMI annually. You may also use online home loan prepayment calculators, if available, to see how much interest and tenure you can save through prepayment.


Prepay a Fixed Amount Every Year

Another option that you can exercise is to prepay a fixed amount at the end of every year. This can also help you close the loan before its tenure. For example, if you have availed a home loan of INR 50 lakhs for a tenure of 20 years at 9% interest rate, you need to pay a monthly EMI of INR 44,986.


If you pay a fixed sum of money at the end of every year, say INR 3 lakhs, by keeping the EMIs constant, you can close your loan in 9 years and 3 months.


Make Investments to Prepay Your Home Loan

Another way for home loan prepayment is to make investments for the same, accumulate a corpus, and then prepay an amount. Depending on your risk tolerance and choice of financial instrument, you can either invest in fixed-return instruments such as bank FDs or market-linked products such as mutual funds to earn returns and prepay your home loan.


Summing it Up

Before exercising the above options for home loan prepayment, make sure to be aware of the home loan prepayment rules. Talk to your lender in case of any doubt and ensure you are well aware of the terms and conditions before proceeding.


Godrej Capital is the financial services arm of Godrej Group which offers home loans, Loan Against Property and other secured loans. With innovative products and offerings, customers can get hassle-free loans on easy terms and conditions. Click here to know more about the offering.


Disclaimer: The above information is for illustrative purpose only. For more details, please refer to the product or service document and/or connect with our customer representative prior to making any financial decision.