Prepayment Calculator

Reduce tenure. Keeping the EMI constant means every extra rupee compounds against a shrinking balance for the full remaining tenure, which saves the most interest. Reduce EMI is a cash-flow tool, not a savings tool — the interest cut is real but roughly 40–60% smaller on identical prepayments.

Depends on the loan type. Floating-rate home loans: zero, by RBI mandate. Fixed-rate home loans: typically 2% on the outstanding. Car and personal loans: usually 2–5% for the first 12–24 months, dropping to nil after. Education loans: most Indian lenders (SBI, PNB, Axis, HDFC Credila) charge nothing. Always read the sanction letter.

Most Indian lenders accept any partial prepayment above ₹5,000–₹10,000, though some limit you to 2–4 prepayments per year. There is no maximum — you can foreclose the entire outstanding at any time. Some banks require a prepayment request 24–48 hours in advance so the amortization is recomputed correctly.

As early as possible. In the first 20% of the tenure, roughly 70–80% of every EMI goes to interest — a rupee prepaid then eliminates far more future interest than the same rupee prepaid in the last 20%. Late-tenure prepayments barely move the needle because you're already paying mostly principal.

Compare the loan rate to your realistic after-tax equity return. Home loan at 8.5% floating with 80C/24(b) benefits fully used → equity SIPs at 12% long-term historical returns may edge ahead. Personal loan at 14% → prepay first, always. Car loan at 9.5% fixed → prepay, because there's no tax benefit. Never SIP with borrowed money at 12%+.

No. Full foreclosure closes the loan account, which briefly reduces your credit mix score by 5–15 points, but the drop is temporary and small. Partial prepayments have no negative impact — some lenders even report them as positive account activity. Never avoid prepaying to 'protect' your credit score.

Yes at almost every major Indian lender — SBI, HDFC, ICICI, Axis, Kotak, Bajaj Finserv all support partial prepayment via their app or netbanking. Full foreclosure still requires a written request in some cases so the NOC and lien-release can be processed.

By default your EMI stays the same and the tenure shrinks. You can request 'reduce EMI' mode instead — the lender recomputes the EMI on the reduced balance for the same remaining tenure. Reducing tenure saves more interest; reducing EMI helps cash flow. You can switch modes on subsequent prepayments.

Neither is strictly better. Step-up is automatic and compounds with your income, which suits salaried borrowers on a predictable hike cycle. Manual lump sums are more flexible and let you time prepayment around bonuses. Combining both — 5% annual step-up plus a lump sum from the yearly bonus — beats either lever alone by a wide margin, which this calculator shows directly.

For partial prepayments via the app or netbanking, no — the system handles it. For large prepayments above ₹10 L or full foreclosure, most lenders require a prepayment / foreclosure request 3–5 working days in advance so the interest calculation and NOC are correct. Always ask for a fresh amortization schedule after every partial prepayment.

Yes. The Download PDF button generates a branded EMI360 Prepayment Report with your inputs, without-vs-with side-by-side snapshot, strategy ranking (lump sum vs extra EMI vs step-up), the prepaid amortization schedule and personalised recommendations.