What is Home
Loan prepayment?
Pre-payment
is early loan repayment. Prepayment is an EMI installment payment before its
due date and is usually a big amount. If you have a large sum of money, then
you can pay this amount back to repay part of your loan. This results in either
a reduction in the EMIs for the remaining tenure or reduction in tenure with
the same EMI. The prepayment amount must be at least three times your EMI.
What is Home
Loan part pre-payment calculator?
Part
pre-payment calculator is a calculator that shows the positive impact of an
early repayment of your loan.
How to use
Home Loan part pre-payment calculator?
All you need
to do is simply enter your loan details and then enter the amount you wish to
pre-pay. Do keep in mind that this amount will have to be minimum three times
the calculated EMI.
You can move
the sliders to your left or right to adjust the values or you can directly type
the values for the following:
The Loan
Amount
Tenor (In
Months)
Rate of
Interest
The part
pre-payment amount that you wish to pay
After you
enter these details, click on “Done”. You will be able to see two options.
EMI Saved:
This table shows the reduction in your EMI and monthly savings in EMI post part
pre-payment
Tenor Saved:
This table shows the reduction in your tenor post part pre-payment
How a Home
Loan part pre-payment calculator works?
The part
pre-payment calculator works on four main variables:
The Loan
amount
Tenor in
months
Rate of
interest
Pre-payment
Amount
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