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Loan Prepayment Calculator
Reduce Interest & Loan Tenure
Currency
Prepayment Type
You Save
₹0
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Interest (No Prepay)
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Interest (With Prepay)
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Frequently Asked Questions
Is there a penalty for prepaying a home loan?
As per RBI guidelines, banks cannot charge a prepayment penalty on floating-rate home loans. For fixed-rate loans, a charge of 1–2% of the prepaid amount may apply.
Should I prepay or invest the surplus?
If your loan interest rate (e.g. 8.5%) is higher than the expected post-tax return on your investment, prepayment wins.
Should I reduce tenure or EMI after prepayment?
Reducing tenure saves more total interest. Reducing EMI is better if you need monthly cash flow relief. Most financial advisors recommend reducing tenure.
Can I make multiple prepayments?
Yes. Most banks allow partial prepayments anytime after 6 months. Each prepayment compounds the savings — the more you prepay, the less you owe.