Loan Prepayment Strategies

Prepayment can save significant interest and shorten your loan tenure if done tactically.

Useful strategies

• Use windfalls (bonuses, tax refunds) to make lump-sum prepayments early in the tenure.
• Prefer reducing tenure instead of EMI when possible — this reduces total interest faster.
• Check for prepayment penalties and calculate net benefit before paying.
• Make regular small extra payments to principal to lower interest accrual.

Model the impact of prepayments in our EMI Calculator to see how much interest you save and how many months you cut from your loan.