Here i will explain how you can Profit by using 3 months EMI moratorium give by RBI to all Indian Loan Holders.
Please note this only works for those who have multiple loans(i.e Home loan and Personal Loan or Home loan and Car Loan etc..)
Here i am Giving Case Study so that everyone can understand easily
Case 1 – Let us assume you have 2 different loans.
First one is Home Loan and second is Personal Loan.
Let us assume that You took Home loan on March 2020 for an amount of 50 lakhs(5000000) with an interest rate of 9% and loan tenure is 240 months.
Here is how much you pay for home loan –
EMI you will pay – 44,986
Total Amount(for 240 Months) you Pay – 1,07,96,711
Loan End Date – FEB 2040
At the same time(March 2020) you also took a Personal loan of 10 lakh(1000000) with an interest rate of 12%, Loan Tenure is 60 months.
Here is how much you pay for Personal Loan –
EMI you will Pay – 22,244
Total Amount(for 60 Months) you pay – 13,34,667
Loan End Date – Feb-25
See how you can save money if you opt for 3 Months EMI waiver –
At the end of 3 months Your total home loan amount would be 5113000(Interest amount added for 3 months)
EMI you will Pay – 46000
Total Amount(for 240 Months) you pay – 1,10,40,717
Loan End Date – June 2040
Oh no we are paying 2,44,006 rupees Extra.
So here is what we need to do to profit.
Step 1 – You will opt for 3 months EMI moratorium for Home loan. Doing that you again need to pay EMI from JULY 2020
In these 3 months(April, May and June) you don’t need to pay EMI amount(44,986 x 3 = 134958)
Step 2 – You need to make a Prepayment of 1,35,000(the amount you saved without paying Home loan emi for 3 months). Make Payment on June 2020 For your Personal Loan.
Here is what happens if you Make Payment(1,35,000) on JUNE 2020 For Personal Loan
Doing that You already saved 92,256 Rs on your personal Loan and also got your term reduced by 8 months(End Date would be May 2024, Previously end date is FEB 2025).
Step 3 – Now save 22,244 Rs EMi every month in your bank account for 8 months.
Total will become 22, 244 x 8 = 1,77, 952 in your bank account by FEB 2025
Step 4 – Make a Prepayment of 1,80,000 rs to your home loan on FEB 2025.
Here is what happens if you Make Payment(1,80,000) on FEB 2025 For Home Loan
Total Amount you pay – 1,05,44,785 Rs by APril 2039.
How much you saved?
1,07,96,711 – 1,05,44,785 = 2,51,926
You paid 2,51,926 less amount on your home loan. Also remember you saved 92,256 on your personal loan also.
Also you paid of complete loan by APril 2039(10 Months Before). Don’t Forget you already cleared your personal loan 8 months early.
You can use this method on car loans, Business loan, Holiday Loan, Gold loan etc..
Hope you all liked my method. Please share this webpage with your friends so that they can also take advantage of this method.
As you all know this is uncertain time as we are seeing job loss etc.. It would be better if use 3 months EMI moratorium and save some money in our bank accounts. If anything happens(Job Loss etc) we can atleast have some money with us which we can use in this hard time.
Please dont forget to share and help others.
If you find any flaw or suggestions please post a comment.