Original sanctioned amount
Annual interest rate
Original loan tenure
Lump-sum amount paid extra
After which monthly payment
Monthly EMI
₹0
Interest Without Prepayment
₹0
Interest With Prepayment
₹0
💰 Total Interest Saved
₹0
New Tenure / EMI
—
Amortization Schedule (with Prepayment)
| Month | EMI | Principal | Interest | Balance |
|---|
Why Make a Loan Prepayment?
A prepayment (also called a part-payment or foreclosure top-up) is any payment made above your scheduled EMI. It directly reduces the outstanding principal, which in turn reduces the interest charged for all subsequent months. Depending on how your bank applies the prepayment, it results in either a shorter loan tenure or a lower future EMI.
Reduce Tenure vs. Reduce EMI
- Reduce Tenure: Your EMI stays the same but the loan ends earlier. This is the optimal strategy for most borrowers as it maximises total interest saved.
- Reduce EMI: Your tenure stays the same but your monthly cash outflow decreases. Better for borrowers who need near-term cash-flow relief.