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Early Loan Payoff Calculator
See exactly how much interest you save by prepaying your home loan — and find your new tenure.
Loan Details
₹
₹50 Lakh
%
8.5% per annum
Years
20 Years
months
0 months paid so far
₹
₹5 Lakh prepayment
Your Savings Summary
—
Interest Saved
—
Months Saved
—
New EMI (if reduced)
| Parameter | Without Prepayment | With Prepayment | Difference |
|---|---|---|---|
| Monthly EMI | — | — | — |
| Total Interest | — | — | — |
| Total Payment | — | — | — |
| Remaining Tenure | — | — | — |
Frequently Asked Questions
Making an extra lump-sum payment (prepayment) towards your principal reduces the outstanding balance. This means less interest is charged going forward, either reducing your EMI or shortening the loan tenure.
Reducing tenure saves more interest overall. Reducing EMI gives immediate monthly cash relief. Most experts recommend reducing tenure if you can afford the current EMI.
As per RBI guidelines, banks cannot charge prepayment penalty on floating-rate home loans. Fixed-rate loans may have a 2-3% charge — check with your bank.
Most banks allow unlimited prepayments on floating-rate loans. However, some have a minimum prepayment amount (usually ₹10,000–₹25,000). Check your loan agreement.
No — prepayment does not negatively affect your credit score. In fact, a reduced debt-to-income ratio can slightly improve it over time.