Home loans usually span 15 to 30 years. Due to the compounding nature of long tenures, total interest paid often exceeds the original borrowed principal!

The Power of Extra Monthly Payments

Because mortgages operate on a reducing balance system, every single rupee prepayed directly reduces the outstanding principal balance. This permanently lowers the base upon which all future monthly interest is computed.

3 Proven Prepayment Strategies:

1. Pay 1 Extra EMI Every Year: Paying 13 EMIs in a 12-month calendar year can slash a 20-year home loan down to approximately 16 years.
2. Increase EMI by 5% Annually: As your annual income grows, increasing your EMI by a modest 5% each year can cut total interest liability by over 40%.
3. Deploy Windfalls to Principal: Use annual corporate bonuses, tax refunds, or maturity proceeds from fixed deposits to make lump-sum principal curtailments.

Test your potential savings using our Home Loan Calculator.