Loan prepayment
Paying off part of a loan early, which cuts the interest you pay.
After a part-payment you can keep the EMI and finish sooner (saves the most interest) or lower the EMI and keep the end date. Banks can't charge a prepayment penalty on floating-rate home loans to individuals.
Prepaying early in the loan, when most of each EMI is interest, saves the most.
Home Loan Prepayment Calculator
How much interest a part-payment saves, and how much sooner the loan ends.
Related terms
Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.