Your Loan + Prepayment Details
Runs entirely in your browser. We see nothing.
Before vs After Prepayment
Balance over time
Before vs after prepaymentThe chart compares the balance path before and after prepayment. It updates after you calculate your result.
Common questions about loan prepayment
Should I reduce my EMI or my tenure when I prepay?
Reducing tenure almost always saves you more total interest, because you keep paying the same EMI for a shorter period rather than a smaller EMI for the same period. Reduce your EMI only if your monthly cash flow is genuinely tight — the interest savings from a tenure reduction are usually significantly higher.
Can banks charge a fee for prepaying a floating-rate loan?
No. RBI rules prohibit banks and NBFCs from charging prepayment or foreclosure penalties on floating-rate personal loans and home loans taken by individual borrowers. If a lender tries to charge one on a floating-rate loan, that's worth escalating. Fixed-rate loans and business loans can still carry prepayment charges, so check your specific loan type.
Is it better to prepay a loan or invest the money instead?
It depends on the gap between your loan's interest rate and what you'd realistically earn investing. If your loan rate is above 10-11%, prepayment is a guaranteed "return" equal to that rate, which is hard for most safe investments to beat. If your rate is low and you have a long investment horizon, investing may edge it out — but it comes with market risk that prepayment doesn't.
How much should I prepay to actually make a difference?
Even a relatively small lump sum matters more early in the loan, when interest makes up most of each EMI. A prepayment equal to 2-3 EMIs made in year one or two typically saves noticeably more interest than the same amount prepaid in the loan's final years — try both scenarios in the calculator above to see the gap on your own numbers.
Does prepaying hurt my CIBIL score?
No — prepaying or closing a loan early is viewed positively by credit bureaus. It reduces your outstanding debt and shows repayment discipline. Just make sure the lender actually updates the loan status to "closed" with the bureau afterward, since delays here are a common source of CIBIL disputes.