Simulate extra monthly EMIs, annual lump-sums, mutual fund SIP comparisons, rent vs buy choices, and tax savings.
*Note: Home loan prepayment gives guaranteed tax-free savings, whereas mutual fund returns are market-linked.
*Based on a 20-year home loan at 8.5% with a 20% down payment.
*Note: Home loan tax deductions are applicable only under the Old Income Tax Regime in India.
Review how your principal reduces year over year with your selected prepayment strategy.
| Year | Opening Balance | Paid EMI | Interest Paid | Principal Paid | Closing Balance |
|---|
Buying a home in metropolitan hubs like Pune, Mumbai, Bengaluru, or Delhi typically involves securing a long-term mortgage spanning 20 to 30 years. While Equated Monthly Installments (EMIs) make property acquisition manageable, standard bank amortization front-loads interest payments. During the first half of your loan tenure, up to 70% of your monthly remittance goes straight toward interest charges rather than settling the principal debt.
Under official Reserve Bank of India (RBI) regulations, regulated commercial banks, co-operative banks, and housing finance companies (HFCs) cannot levy any prepayment or foreclosure penalties on individual floating-rate housing loans taken for non-business purposes. This gives borrowers full freedom to prepay partially or fully without lock-in periods.
For further verification and official policy updates, refer to these trusted portals: