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
Help Center
Locate us
