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Loan Guide

Loan Repayment Calculator India — EMI Schedule & Prepayment Guide

Loan Repayment Calculator India — EMI Schedule & Prepayment Guide — free 2026 guide with formula, examples and calculator.

📅 Updated 2026-03-14 🕒 5 min read 📋 Free Calculator Included

📚 Loan Repayment Calculator India — EMI Schedule & Prepayment Guide

Understanding your complete loan repayment schedule helps you plan prepayments strategically. Making even one additional EMI per year can reduce a 20-year home loan by 2–3 years and save lakhs in interest. This guide shows how to analyse and optimise your loan repayment plan.

1 extra EMI/yr
Saves 2–3 yrs tenure
10% prepayment
Saves 15–20% interest
Yr 1–5
Best time to prepay
No charges
RBI: no prepayment on floating loans

📋 Formula & Calculation

EMI AmortisationEach EMI = Interest Component + Principal Component
Interest = Outstanding Principal × Monthly Rate
Principal = EMI − Interest
Over time: interest ↓, principal ↑
🌟 ₹30L Home Loan Impact of Prepayment

Loan: ₹30L at 8.5% for 20yr. EMI = ₹26,082.
Without prepay: Total interest = ₹32.6L
With ₹50,000 lump prepayment in Year 2: saves ₹3.8L interest + 14 months tenure
With ₹1L prepay Year 2: saves ₹7.4L + 27 months

PrepaymentInterest SavedTenure Reduction (on ₹30L 8.5% 20yr)
None (baseline)₹00 months
₹50,000 in Yr 2₹3.8L14 months
₹1L in Yr 2₹7.4L27 months
₹2L in Yr 2₹13.6L46 months
₹1L/yr for 5yr₹18.2L5+ years
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Use the Loan Prepayment Calculator

Calculate exact interest saved and tenure reduction from any prepayment amount.

Open Calculator →

❓ Frequently Asked Questions

How to prepay home loan in India?+
Call your bank/NBFC to initiate prepayment. Online transfers available with most banks. RBI prohibits prepayment penalties on floating-rate loans. Fixed-rate loans may have 1–2% prepayment charge.
Should I prepay home loan or invest?+
If home loan rate > expected investment return: prepay. If investing returns more than loan rate: invest. At 8.5% loan rate: risk-free PPF/FD (7%) → prepay. Equity SIP expected 12%+ → invest. This is a personal risk tolerance decision.
What is part-payment vs preclosure of loan?+
Part-payment: paying extra amount to reduce outstanding principal. Preclosure: paying the full remaining balance to close the loan entirely. Both are permitted on floating-rate loans without penalty per RBI guidelines.