Frequently Asked Questions
Should I reduce EMI or tenure after prepayment?+
Reducing tenure saves more total interest. Reducing EMI improves monthly cash flow. If you can manage the current EMI, choose tenure reduction for maximum savings.
Is there a penalty for home loan prepayment in India?+
RBI rules prohibit prepayment penalties on floating rate home loans. Fixed rate loans may have charges of 1-3%. Check your loan agreement.
How much should I prepay?+
Prepay as much as possible from bonuses, increments, or windfalls. Even small prepayments early in the loan save significant interest due to compound effect.
When is the best time to prepay a home loan?+
Prepay early in the loan tenure when the outstanding principal is high. Interest saved is much larger in early years versus the final years.
Can I do multiple prepayments?+
Yes, you can make multiple partial prepayments. Each prepayment recalculates your outstanding balance and remaining tenure or EMI.