Make part-prepayments to cut home loan tenor, but don't use retirement fund

Another option is to switch to another lender who is willing to refinance at a lower rate

Interest rates on home loans linked to the repo rate have risen by 250 basis points since May 2022, putting borrowers under pressure. The number of outstanding equated monthly instalments (EMIs) has increased. In many cases, EMIs have also gone through the roof. As the accompanying table shows, a 250 basis points hike in interest rates from 7 per cent to 9.5 per cent on a Rs 50 lakh loan for a 20-year tenure can mean an increase in EMI from Rs 38,765 to Rs 46,607, a difference of Rs 7,842. The total interest burden over the loan tenor shoots