Get On The Home Loan Fast Track: Tips to Cut Down Your Home Loan Tenure

Owning your dream home is a significant financial milestone, but the thought of a long home loan tenure can be daunting. The good news is that there are strategic ways to reduce the tenure of your home loan, allowing you to achieve full homeownership faster while saving on interest payments. In this blog, we’ll explore practical tips and strategies to help you cut down on your home loan tenure and enjoy a debt-free life in your own home sooner than you might think.

1. Increase Your EMI Amount:

One of the most straightforward ways to reduce your home loan tenure is to increase your Equated Monthly Instalment (EMI). Even a slight increase can significantly impact the duration of your loan. Calculate the additional amount you can comfortably pay each month and discuss it with your lender to adjust your EMI accordingly. To better understand how an increasing EMI can reduce your home loan tenure, consider the following table:

Home Loan Details:

  • Loan Amount: Rs. 200,000
  • Interest Rate: 6% per annum
  • Loan Tenure: 20 years (240 months)
MonthOpening Balance  EMIPrincipal Payment Interest Payment Closing Balance 

In this table, you can see the impact of increasing the principal payment component of your EMI. With the increased EMI, the loan tenure is reduced from 20 years to 16 years and 4 months. Not only does this result in earlier loan repayment, but it also reduces the total interest paid over the life of the loan. 

2. Make Bi-Weekly or Fortnightly Payments:

Instead of paying your EMI monthly, consider making half of your EMI amount every two weeks. Over the course of a year, this results in 26 half-payments (equivalent to 13 full payments). This extra payment each year can make a substantial difference in reducing your loan tenure.

3. Use Windfalls and Bonuses:

Whenever you receive unexpected income, such as a bonus, tax refund, or inheritance, consider using a portion of it to make lump-sum payments towards your home loan principal. Reducing the principal amount directly shortens the loan tenure.

Home Loan Principal AmountLoan Tenure (Years)Reduced Principal Amount After PaymentNew Loan Tenure (Years)

In the above table, we can see that a reduction in the home loan principal amount directly shortens the loan tenure. For example, if a borrower has a home loan of ₹10,000,000 for 20 years, and they receive a windfall of ₹2,000,000, they can reduce their principal amount to ₹8,000,000. This will reduce their loan tenure to 16 years, assuming that they keep their EMI the same.

4. Refinance at Lower Interest Rates:

Keep an eye on the interest rate market. If you find an opportunity to refinance your home loan at a lower interest rate, it can lead to reduced EMIs and a shorter tenure. However, do assess the refinancing costs to ensure it’s financially viable.

5. Opt for a Shorter Loan Tenure at the Start:

If you’re planning to take out a new home loan or are in the process of selecting a loan, opt for a shorter loan tenure from the beginning. Shorter tenures often come with lower interest rates and can save you a significant amount in interest over time.

Home Loan Principal AmountLoan Tenure (Years)Interest RateNew Interest RateNew Loan Tenure (Years)

In the above table, we can see that refinancing a home at a lower interest rate can reduce the loan tenure. For example, if a borrower has a home loan of ₹10,000,000 for 20 years at an interest rate of 9%, they can refinance to a new loan with an interest rate of 8%. This will reduce their loan tenure to 18 years, assuming that they keep their EMI the same.

6. Home Loan Bi-Annual or Annual Review:

Periodically review your home loan with your lender to explore options for increasing EMIs, reducing interest rates, or switching to a different repayment plan.


Reducing your home loan tenure is not only a financially savvy move but also brings you closer to the freedom of owning your home outright. By implementing these strategies, you can take charge of your financial future and enjoy the peace of mind that comes with becoming a debt-free homeowner sooner than you thought possible. Remember, every step you take towards reducing your home loan tenure is a step closer to making your homeownership dreams a reality.


Frequently Asked Questions (FAQs):

Finnable has set a required minimum age for personal loan of 21 years for individuals to be eligible for a personal loan. This ensures that applicants have reached legal adulthood and are capable of entering into a financial agreement.

Yes, Finnable understands the financial needs of young borrowers and offers personalised loan options tailored to their specific requirements. Whether it's financing higher education, purchasing essential items, or starting a business venture, Finnable provides support to young individuals seeking financial assistance.

Borrowers nearing retirement may have unique financial needs, such as retirement planning, medical expenses, or supporting their children's education. Finnable offers personalised loan solutions that consider the specific circumstances of pre-retirement individuals, helping them meet their financial goals.

Unfortunately, no. Finnable does not, at the moment, offer any loans to senior citizens. Currently, 60 is the maximum age for personal loans set by Finnable

Other than personal loan age limits, Finnable considers various other factors for determining loan eligibility. These factors may include the applicant's income, credit score, repayment capacity, and employment stability. By assessing these aspects comprehensively, Finnable ensures that borrowers across different age groups can access the loan products that best suit their financial needs. 


Amit Arora

I am a seasoned retail banker with over 21 years of global experience across business, risk and digital. In my last assignment as Global Head Digital Capabilities, I drove the largest change initiative in the bank to deliver the end-to-end digital program with over US$1 billion in planned investment. Prior to that, as COO for Group Retail Products & Digital, I implemented a risk management framework for retail banking across the group.
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