Welcome viewers! Let’s explore some more innovative ways to repay your loan beyond the usual EMIs. These methods could offer you financial flexibility catered to your specific situation.
First up, we’ll look at Balloon Repayment. Here, you pay smaller EMIs covering mostly interest through the loan tenure. The remaining loan amount is cleared in one large payment at the end.
Next, you’ll learn about Bullet Repayment, where you skip monthly EMIs entirely. Instead, you repay the full loan—principal and interest—in one go at the end of the term.
Then the video will discuss Loan Part-Payments. This is when you pay an extra amount beyond your regular EMIs, directly towards the principal. This can reduce the loan amount, reducing your future interest costs.
Lastly, we’ll explore Prepayment or Foreclosure. This allows you to pay off the entire outstanding amount early, closing the loan ahead of schedule. However, it’s wise to check if your lender charges any penalties for part-payments and foreclosures.
Overall, you’ll learn that these repayment methods could be beneficial for anyone expecting a cash inflow. This could be from a salary hike, business profits, inheritance, etc. So, choose the repayment method that aligns with your financial goals and lifestyle!
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