Home Loan EMI &
Part-Payment Calculator
See how paying just 1 extra EMI every year or increasing your EMI by 5% annually saves ₹8 to ₹18 Lakhs in interest and frees your family from home debt years sooner.
1 Loan Details
SBI / HDFC / ICICI₹39,493
Standard monthly obligation₹49,78,320
Bank earns more than principal!Prepayment Impact Summary Standard vs Accelerated
| Metric | Without Prepayment | With Your Plan | Net Benefit |
|---|---|---|---|
| Loan Tenure | 20 Years (240 mos) | 16.3 Years (196 mos) | -3.7 Years |
| Total Interest Payable | ₹49,78,320 | ₹38,30,080 | -₹11,48,240 saved |
| Total Cost (P + I) | ₹94,78,320 | ₹83,30,080 | Save ₹11.48 Lakhs |
Deduct up to ₹2,00,000 per financial year on interest paid for a self-occupied property.
Deduct up to ₹1,50,000 per financial year on the principal component paid towards your home loan.
The Truth About Home Loan Prepayment in India (RBI Guidelines)
When taking a ₹45 Lakh home loan at 8.65% for 20 years, your total interest payable is roughly ₹49.8 Lakhs. This means you will pay the bank more in interest than the entire amount you borrowed! Prepaying principal early is the single most effective way to protect your family's financial freedom.
1. Did You Know? Zero Prepayment Penalty on Floating Rate Loans
Under clear directives from the Reserve Bank of India (RBI), banks and Housing Finance Companies (HFCs) like SBI, HDFC Bank, ICICI Bank, and LIC Housing Finance are strictly forbidden from charging any prepayment penalty or foreclosure fees on floating rate individual home loans.
You can prepay ₹10,000, ₹50,000, or ₹5 Lakhs at any time without paying a single rupee in penalty.
2. Crucial: Always Choose "Reduce Tenure" over "Reduce EMI"
When you submit a part-payment cheque or make an online prepayment via net banking, the bank portal will ask you to choose between two options:
- Reduce EMI: Keeps your loan duration the same (e.g. 20 years) and lowers your monthly EMI slightly. (Bank's preferred choice because they still collect maximum interest over decades).
- Reduce Tenure (Recommended): Keeps your monthly EMI unchanged and reduces your total loan duration. Always choose this option. This is what saves you ₹10+ Lakhs in compounding interest.
Frequently Asked Questions
Is it better to prepay my home loan or invest in SIP mutual funds?
A home loan interest rate of 8.65% is an after-tax guaranteed return. If your risk profile is conservative or you carry debt anxiety, closing your home loan gives immense psychological peace. A balanced approach is: prepay an extra 5%–10% annually while continuing a parallel SIP in equity index funds.
How many times in a year can I make part-payments?
Most major Indian banks allow unlimited online prepayments through netbanking or UPI, though some HFCs specify a minimum threshold per transaction (usually ₹10,000 or 1 EMI amount).