Home Loan Part Prepayment Calculator: Calculate Part Prepayment

Use our easy-to-access pre payment EMI calculator to help you plan for your dream faster and more efficiently. Please select the loan type that you require and get your estimated costing right now!

My Outstanding Loan amount is

INR

0Cr1002003Cr

My current interest rate is

66.577.588.59

My Outstanding Loan tenure is

3672108144180216240

36912151820

Amount that you want to pre-pay

INR

0Cr1002003Cr

Do you want to decrease EMI or Keep EMI same & decrease loan tenure?

Decrease EMI Keep EMI same & Decrease loan tenure

Number of months you will close your loan early

Months

Current Tenure:

240 Tenure

Revised Tenure:

196 Tenure

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What is Pre-payment of Home Loan?

Pre-payment of a Home Loan is a great way to pay a part or the whole amount of your housing loan before its tenure is completed. It is popular among borrowers who have surplus funds. It gives them a chance to manage and reduce their principal amount proactively. Overall, it's a strategic financial move that helps borrowers to take control of their loan repayment timeline or EMIs payable.

What is Part Payment of Home Loan?

Part payment of a Home Loan occurs when you use surplus funds to pay a portion of your Home Loan but not the entirety of the amount outstanding. By depositing this surplus into your loan account, you reduce the unpaid principal. It helps reduce the principal amount and lightens the interest load, reducing your overall EMI burden. It's a smart financial move to consider part payment whenever you have surplus funds. Learn more about it with our Part Payment Calculator. It can help you calculate your EMI with part payment and make informed financial decisions.

Feature	Home Loan Prepayment	Home Loan Part Payment
Meaning	You will pay the full outstanding Home Loan amount before the tenure ends.	You will pay a part of the outstanding Home Loan amount and reduce the principal amount. In this case, you will not close the loan entirely.
Aim	People usually opt for this to close the Home Loan early and become debt-free.	People go for part prepayment to reduce the loan tenure or EMI amount by paying off a significant portion of the principal.
Effect on Tenure and EMI	The loan tenure ends early, and you don’t have to pay any EMIs.	It will either reduce the EMI amount and keep the tenure same or vice versa.
Interest Savings	You save a lot of money as the loan is completely paid off.	The total interest amount decreases as the principal amount becomes less.
Additional Charges	Some lenders impose additional penalties for Home Loan prepayment.	There are certain part-prepayment charges depending on the loan terms and conditions.
Example	If you owe Rs. 10 lakhs to a bank and pay the full amount before the tenure ends.	If you owe Rs. 10 lakhs to a bank and make a Rs. 2 lakh payment, the remaining amount becomes Rs. 8 lakhs.

Eligibility for Home Loan Prepayment

Check your lending bank’s latest prepayment policies.
Thoroughly review the prepayment clause in your agreement for any type of restrictions or penalties.
Make sure that your lending bank has an option for prepayment without any penalties.

How Does the Home Loan Part Payment Calculator Work?

Here’s how the Home Loan Pre-payment or Part Payment Calculator works:

Enter Your Outstanding Loan Amount: Use the slider to choose how much your outstanding loan amount is – the first step to figuring out your new EMI.
Put Your Interest Rate: Use the slider to pick the interest rate – enter the applicable interest rate.
Decide Your Loan Time: Enter how long you have to pay back (in months or years) – you can use the slider to choose the tenure.
Select Your Part Payment Amount: Enter the amount you want to pay – you can use the slider.

The calculator also gives you options to either decrease EMI or Keep EMI the same & decrease loan tenure.

And there you go! You'll see your new EMI right away.

Which one to choose – Reduce EMI or Tenure?

While you are using the Home Loan Prepayment Calculator, you are given 2 options: Reducing the EMI or the tenure. Here’s how to choose one:

Reduce EMI

Good for people looking to ease their monthly expenses
Gives you funds for other expenses and investments

Reduce Tenure

Good for people looking to save on interest and close the loan as soon as possible.
You get to save a lot on the interest amount and shortens the repayment tenure.

How Home Loan Prepayment Works: A Step-by-Step Example

For example, Rohan has taken a Home Loan of Rs. 50 lakhs for 20 years at an interest rate of 8% p.a. His monthly EMI is Rs. 41,822.

He wants to prepay some amount to reduce his principal, but he is not sure how much he should pay:

Prepay Rs. 1 lakh once a year
Prepay Rs. 50,000 every six months
Prepay Rs. 5,000 every month

Let’s compare the finances in each case:

Outcome (approx):

Scenario	Total Interest Paid	Loan Tenure Reduced
No Prepayment	Rs. 50.37 lakh	20 years
Rs. 1 lakh annually	Rs. 36 lakh	14 years 8 months
Rs. 50,000 every 6 months	Rs. 34 lakh	14 years 2 months
Rs. 5,000 monthly	Rs. 32 lakh	13 years 9 months

Using a Home Loan prepayment calculator, you can also calculate how much prepayment amount works best for you.

Home Loan Prepayment Charges

We provide you with the best Home Loans that suit your needs. Fixed or floating – we offer competitive interest rates with different useful features. From our variety of adjustable repayment options, you can reduce your overall tenure or monthly EMIs with ease.

Check Prepayment Charges

Things to Consider Before Making Home Loan Prepayment

Age

If you are taking a Home Loan when you are at the stage of retiring, then it is a good idea to prepay your Home Loan before you retire.

Tax Deductions

You can claim for tax exemption of up to Rs. 1.50 lakhs per financial year when you repay the principal amount of your Home Loan. When you opt for prepayment – part or full, you won’t enjoy these tax benefits. In case of part prepayments, you will get lower tax benefits.

Investment Income

Compare and analyse the returns you get on your investments with your Home Loan. If your returns are higher than your Home Loan interest, then it’s better to invest the surplus amount than using it to prepay your Home Loan. You can use Retirement Calculator and Mutual Fund Calculator to calculate your investments with ease.

Current & Future Funds

Closely analyse how much funds you have to prepay your Home Loan amount and how much you need for the future. This way you can ensure that you have sufficient funds after prepayment.

Age of the loan

The main motive of prepayment is that your interest amount is reduced. However, if you do prepayments at mid-to-late stage of the loan, you already lose a significant amount of money on interest and don’t save a lot. In such cases, it is crucial to choose the right time for prepayments.

Benefits of Prepayment of your Home Loan

Flexible Repayment Plans
Adjust your loan journey with options like shorter tenure or smaller EMIs, easily calculated. Adapt your repayment strategy to suit your financial comfort.
Credit Score Boost
Full loan repayments positively impact your CIBIL score, giving your financial record a boost. This would help you secure loans and other financial support in the future.
Short Loan Tenure
When you choose to reduce your loan tenure, you can pay more and save more interest.
Save on Interest
When you prepay a major chunk of your principal amount, the total interest amount significantly decreases.

Know more about Home Loans in these metro cities

Mumbai

Banglore

Chennai

Hyderabad

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Pre Payment Calculator FAQs

Are there any limitations or factors to consider when using a loan prepayment calculator?

When considering home loan prepayment, factors like age and future cash flows should be considered.

Borrowers in early or near retirement age can opt for prepayment due to stable income or no obligations. Additionally, assessing financial circumstances and ensuring sufficient income to manage expenses is crucial. Being aware of tax benefits and implications on the home loan is also important before making a prepayment decision.

How does making a prepayment on a home loan reduce the overall interest cost?

As your income increases during the loan tenure, consider increasing the existing EMI or reducing the loan tenure.

Both options result in faster loan repayment and savings on overall interest. The prepayment amount is adjusted from the principal outstanding, reducing the interest component of the loan.

Can I make multiple prepayments on my home loan, and how does it affect the tenor?

Yes, one can make multiple prepayments on his/her home loan account. Although, borrower should check prepayment clause in the home loan agreement and charges mentioned on Kotak website.

Can I use a home loan prepayment calculator for any type of home loan?

Yes, the calculator can be used for any type of Home Loan product.

What are the Applicable Home Loan Prepayment Charges?

Home Loan Prepayment charges to be referred under Fees & Charges section on Kotak Bank website

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Home Loan PrePayment Calculator