Loan Prepayment Calculator
Discover how making extra payments on your loan can save you thousands in interest and shorten your repayment period.
Prepayment Calculator
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Prepayment Details
The Hidden Power of Loan Prepayment
Making a prepayment on your loan is one of the most effective ways to reduce your financial burden and build equity faster. A prepayment is any payment you make that is over and above your regular Equated Monthly Installment (EMI). Because this extra amount goes directly towards reducing your outstanding principal, its impact on your loan is significant.
How Prepayments Work to Your Advantage
- Reduces Principal: The extra amount you pay is deducted directly from the principal loan amount.
- Lowers Future Interest: Since future interest is calculated on the reduced principal, the total interest you pay over the life of the loan decreases dramatically.
- Shortens Loan Tenure: By clearing the principal faster, you can pay off your loan years ahead of schedule, freeing up your cash flow for other investments.