Prepayment Savings Calculator

Yes if: 1) You have surplus money, 2) Loan tenure > 2 years remaining, 3) Interest rate > 9%, 4) No other high-interest debt. Pre-payment saves significant interest over time.

Example: Rs 10 lakh @ 9.5%, 5 years remaining. Pre-pay Rs 2 lakh now: saves ~Rs 65,000 in interest, reduces tenure by 1.5 years. Earlier pre-payment = bigger savings.

After 1 year: most banks free. Within 1 year: 2-4% of pre-paid amount. Floating rate loans: free (RBI rule). Fixed rate: charges applicable. Read agreement for specific terms.

After pre-payment, choose: 1) Reduce tenure (same EMI, finish faster, more interest saved) - RECOMMENDED, 2) Reduce EMI (same tenure, more cash monthly). Tenure reduction saves more.

Partial: pay extra towards principal anytime. Full: close entire loan. Both save interest. Most banks accept minimum partial pre-payment Rs 10,000-50,000.

If loan rate > investment returns (post-tax): pre-pay. Loan @ 9% vs FD @ 7%: pre-pay better. Loan @ 9% vs equity @ 12% (over 5+ years): invest. Consider risk tolerance.

Visit bank branch / online portal / banking app: select loan account → pre-payment option → enter amount → choose tenure/EMI reduction → confirm. Pay via NEFT/RTGS/cheque.

Car loan: no tax deduction (unlike home loan). So pre-payment saves only interest, no tax impact. Pre-pay aggressively for max savings. Self-employed: car for business use may get partial deduction.