2 weeks ago

Home loan ends? Five smart uses for your saved EMI

Home loan nearly over? 5 things to do with the EMI you are about to save · livemint.com

Finishing a home loan means you no longer need to pay that monthly EMI.

Instead of spending all the extra money, you can use it carefully.

First, build savings for emergencies such as illness or job loss.

You should also check whether your life and health insurance are still enough.

The saved money can help grow your retirement savings over time.

If you have expensive credit card or other loans, paying them off may be helpful.

It is also wise to save for repairs, taxes and other home costs.

Finally, make sure you receive the lender’s closure papers and confirm that the property charge is removed where applicable.

Key facts

Emergency fund target: About six months of essential expenses, potentially more for people with dependents, variable income or limited job security.
Insurance review: Borrowers should reassess term insurance, health insurance and any loan-protection insurance.
Retirement options: The article lists EPF, voluntary provident fund, PPF, NPS, stocks and mutual funds as possible options, depending on risk and investment horizon.
Debt repayment: Freed-up cash can be used to reduce costly credit card balances, personal loans, vehicle loans and other liabilities.
Home costs: A separate fund can cover repairs, renovations, property taxes, society charges, insurance and other maintenance expenses.
Closure documents: Borrowers should obtain a properly stamped lender’s no-dues certificate and other loan-closure documents.
Property records: Borrowers should check that the lender’s charge has been removed from relevant records where applicable.

livemint.com · 2 weeks ago