In recent years, the various incentives undertaken to make housing loans affordable for first-time homebuyers boosted the growth in housing credits to 17-19% in FY 2019. With increasing affordability, the risks of defaulting on housing loan have also reduced significantly. However, even with these factors at play, it is important to make sure that you repay your loan well within time to avoid falling into a debt trap. One of the best ways to minimise the risk of defaults is to prepay or foreclose your housing loan through higher EMIs. You can check the positive impact of prepaying your advance by using a calculator for home loan prepayment. Note that during the initial months of your housing loan repayment, the interest component remains higher than the principal in your EMIs. As the loan tenure reduces, the principal amount becomes higher than the interest payable. Advantages of prepaying your loan with…