Repay your Loan early and Save

[raaman]

If you have applied for a loan for a personal work or for any other purpose and if you want to pay it off ahead of time, following certain strategies may help you. Deciding to pay before your personal loan is a good decision. It will help you save money.

It is because the less time you take to repay the loan, you will be paying less interest on the loan amount you have taken and saving money. The principle of ‘less time, more savings’, applies throughout the world of credit. But here we will refer to the personal loan.

Let us say that your loan amount can be paid in 24 installments and you have decided to cut the time of repayment to 18 installments, that is, you want to pay everything in a year and a half. If you follow some good strategies, you can achieve this goal.

 

[sincerem]

That's a fine suggestion, for those taking loan to try and pay off their loans in order to cut down the repayment interest rate. I've experienced such before, when my sister borrowed from a mortgage bank and paid back the loan on time even before deadline and the interest charged was very less compared to the amount that could've been charged when deadline is reached.

 

[Sotherefore]

I can't apply for a loan for my business and I'm not always in support of someone getting a loan to start up a business or anything because it is always risky with high possibility of being in serious debt if you don't know how to manage their business properly to make enough profit to return the dept you collected.

 

[btaliat]

That's a nice strategy. Except in some rare occasions with some rare people, everybody wish to pay up his loans as early as possible. The delay or slow pace of repaying loans may be due to some unforseen circumstances or personality if the debtors. Because we have some people that don't pay or not willing to pay when they borrow

 

[Alexandoy]

I worked in the bank for more than 10 years and we got our home mortgage from that bank. When you take out a loan the term (duration of installments) is specified. In the example of 24 installments you have to follow it. If you have money to pay it all today then you can but the interest will still be the same. In other words you cannot advance the payments to save on interest.