Pay Home loans Early with your Provident Fund (PF) – Debt Management Guide
Home loan EMIs are one of the every month investment if you ignore of your financial health and money management that will impact your financial health in long term tenure even you are saving money in guaranteed yieldings savings plans. You can pay off your home loan early with your Provident Fund (PF) amount today. Learn how to pay your home mortgage loans with Provident Fund amount.
How to Pay Off Your Home Loan Faster
Buying a new home is a most wonderful moments in the life of every individuals unlike the purchase of own new bike or car, etc. It should not be a complex with lack of proper financial planning and budget investment on a new home or apartment. During the recent decades, many people prefer the home loans from banks and housing finance companies.
Home loan EMIs – Provident Fund (PF)
Home loan EMIs are the monthly installments offered by associating banks or housing agencies to pay all your loan amount on a monthly basis to reduce your investment burden and to support you in managing your cash flows with money management. So pay your home loans with your Provident Fund (PF) amount today!
Many savings plans and investment schemes of banks and the post-office are with many disadvantages in addition to the regular benefits of money saving and investing. Normally, your financial planning consists of money management strategy like becoming a millionaire with various saving and investment plans. The major disadvantages of these money management plans are availability of alternate plans, not transferable, low interest rates, lock-in period facilities etc.
Best Ways to pay Home loans with your financial plans
There are many ways exists to pay home or apartment loan EMIs and make your loan tenure flexible as per your money management strategy. The existing best ways to pay off your home loans early are;
- Initial pre-payment (Oftenly, down payments)
- Switching to a lower rate (Changing to other payment slab)
- Increasing the EMI (increasing the payable amount to reduce the tenure shorter and reducing the interest rates)
- Changing to other bank (Moving to another bank that offering somewhat flexible payment etc.)
- Increasing your house loans EMI with Increase in Salary
- Diverting your Annual Bonus to repay your home loan
- Investing your savings in a high returns opportunity
- Associating with firms offering lowest Home Loan Interest Rates
However, these home or apartment loans from banks and housing firms are becoming necessary for many government and private employees. One of the advantages of home loans is tax rebate long term under the Income Tax Act. Though the tax saving amount not a big amount, the monthly benefits from homes in the form of house rentals and scope to earn highest returns in real estate among the other money investment tools.
Pay with your PF amount why it is better?
What is PF?
PF stands for Provident Fund. Normally categorized into 2 sources. one is employee PF (contribution by you) and another is employer PF (contribution by your company). What are the benefits of PF account…
Provident Fund (PF) Advantages:
- One of the top sources for every employee
- Offers high protection for your money
- Not impacts your monthly earnings like salaries etc.
- Gives you a tax benefit up to entire Rs. 1 Lakh in the account
- Current earning interest is around 8%.
- Offering the loan facility
- Helps you as a savings corpus for the future expenditure
- Hassle free Online PF Transfer facility
- Simple Online EPF Withdrawal Process
- No need of KYC documents for authentication
- Availability of universal account number (UAN)
- Availability of loan from the PF account
- Managing the PF account at EPFO website, www.epfindia.com
- Ability to track the PF balance, process online
- No restrictions on time tenure for PF money withdrawal online and offline
- Simple PF Withdrawal Form to fill to claim your PF amount
What are less or low returns money saving and investment plans?
Here is a list of low yielding savings and investment opportunities those giving the less returns if you chose without any financial planning advice. What is the best home loan rate in your area. May be your’s bank or non-financial institutes. Right. Then why you are preferring to these low return earning sources in your money management strategy? No idea on what are high returns plans existing? Hey, here there is no debate on what are top saving and investment opportunities to earn money with savings and investing strategy.
Are you receiving lesser returns than the home loan rates?
The major saving and investment opportunities offering lower returns than your house loan rates. The low yieldings saving and investment plans are,
- Bank’s best saving accounts
- RDs (Recurring Deposits)
- EPF (Employees’ Provident Fund)
- Endowment Insurance Schemes
- PPF (Public Provident Fund)
- ULIPs (Unit Linked insurance plans)
Manage your Money to Pay Off your Mortgage Early
Recheck your saving and investment strategies to reduce your loan burdens. It is better to close all or most of these lesser return savings/ investments and divert the funds to close the home loan. Check the PF Balance Online and Online EPF Transfer and Withdrawal facility are helping the many employees to invest the money from your monthly salary you withdraw from your EPF account wisely and to pave the roads for happy retirement nest in coming years without any hassle. So save and invest wisely with an effective financial advice and money management opportunities.
If your monthly earning around RS. 15,000 from your salary or business sources than you have a decent house loan payment opportunity. that is yours Employees’ Provident Fund Organization (EPFO) provident fund (PF) accumulation amount to repay your home loans. So prefer your PF amount to pay loans’ equated monthly installment (EMI).
Why PF amount to pay your House loans:
- Reduction of Interest Payouts
- Prepay – without reducing the tenure
- Extending to long tenure
- No need of applying for personal loans
- No need to repay to EPF organization
Is it good to pay mortgage with the PF amount?
The PF amount that accumulated in the EPF account is highly flexible one to low salarised employees. The amount of your PF contribution will be deducted by your EPF organization (your company) and transferred to your bank or housing financial firm to pay your house loans in the form of equated monthly installment (EMI).
This is as per tripartite agreement with an employee who holds the EPF account, housing finance company or the bank and the EPFO. You can prefer your PF amount to pay all your mortgage with your financial planning and saving and investment plans of government as well the private firms’ lending loans to reduce your burdens with yours effective money management strategy and with long term, short term savings and investing ideas to buy a desired apartment.
Do Debt Management with your PF amount to buy a home fast.