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What is the best way to pay back home loan?

samuel asked:

After taking home loan from a bank, the repayment consists of two parts: the principal amount and the interest amount. Is the EMI for both fixed by the bank or can the borrower decide these amounts? I heard if one starts repaying the principal first, the interest decreases and this acts in favor of the borrower. Is that true and is that allowed by the (nationalized) banks?
Asked on: 2012-12-25 08:22:26

1 Comment

  1. Talk Turkey says:

    You still have to pay the minimum interest and principal the bank requires.
    You cannot decide this minimum amount.
    What people do:
    They send an extra payment and put on the check:
    Payment towards principal.

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