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.


5 Things to Consider Before Prepaying Home Loan

While home loan prepayment is a convenient option to close the loan before its tenure, the exercise calls for keeping some essential things in mind. It shouldn’t be a rushed decision and must be taken after considering all aspects. What are these? Let’s find out.


Be Aware About Home Loan Prepayment Rules

Before you prepay a home loan, you must be aware of the prepayment rules. Home loan prepayment rules differ for individuals and non-individuals. Note that when non-individuals procure a home loan, either on the fixed or floating interest rate, and prepay the same, attracts a penalty. When a company or a firm is the borrower or co-borrower of the home loan, they are considered non-individuals.


On the other hand, individuals generally don’t have to pay prepayment penalties towards their home loan, particularly if the loan is procured on a floating rate basis. Hence, it is important for you to be aware of home loan prepayment rules by reading the terms and conditions. In case of any doubt, do seek your lender’s help.


Choose Wisely Between EMI Reduction and Loan Tenure

This is another vital consideration when you are considering prepayment of a home loan. If you choose to reduce your tenure, you can close your loan earlier than the original tenure and also save on interest payments. You can use online home loan prepayment calculators to compute the amount saved on interest if you choose to reduce the tenure.


Note that generally, the tenure gets adjusted, and you have to specifically ask for any change in the EMI amount. Evaluate both options carefully and choose the one that best suits your requirement.


Evaluate the Impact it Has on Tax Savings

Tax saving is an essential aspect of a home loan. The principal and interest both are eligible for tax exemption. However, when you prepay your home loan, it reduces the outstanding principal and subsequently the interest outgo. So, you could miss out on tax savings. Therefore, before home loan prepayment, be mindful of the tax benefits you might have to forgo if you prepay your Home Loan. You can consult an independent and neutral tax professional before making a decision.


Timing of Prepayment

If you are contemplating home loan prepayment, it is best to do so during the initial tenure of the loan when the interest component is high. Doing so and arranging funds for the same at a later stage may not help you maximize the benefit of home loan prepayment to the fullest, as you would have already paid a chunk of the interest.


Hence, timing plays a crucial role. If you prepay later, you can better utilize the funds to invest elsewhere and build a corpus for other life goals.


In Conclusion
Keeping in mind these essential factors will help you leverage the potential of Home Loan prepayment to the fullest and save money in the long run. Evaluate the possible pros and cons of Home Loan prepayment before going ahead.


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.