Part Payment Calculator —
Interest Saved by Prepayment

Part payment (prepayment) means paying an extra lump sum towards your loan principal before the scheduled EMI. It reduces your outstanding balance, which lowers either your future EMIs or your remaining tenure.

Reducing tenure saves more total interest and gets you debt-free faster. Reducing EMI improves monthly cash flow. If you have surplus savings goal, reduce tenure. If you need monthly relief, reduce EMI.

As per RBI guidelines, banks cannot charge prepayment penalty on floating rate home loans. Fixed rate loans may have 2–4% penalty. Personal and car loans may have 2–5% penalty — check your loan agreement.

Annually is most practical — use your year-end bonus or tax refund. Even one part payment of 5–10% of outstanding principal in the first 3–5 years can save significant interest over the loan life.

No — part payment is positive behaviour and does not negatively affect your CIBIL score. It actually signals financial discipline. Ensure you get a revised amortization schedule from your bank.

Any amount above your regular EMI works. Even ₹50,000 on a ₹50L home loan saves ₹1.5–2L in interest. The earlier in the loan tenure you pay, the higher the savings.