How Loan Prepayment Works (And When It's Worth It)
A plain-language explanation of how loan prepayment reduces interest, the difference between part-payment and foreclosure, and when prepaying is usually worth it.
Read →StrategyReduce EMI or Reduce Tenure After Prepayment? Which Saves More
After a loan prepayment your lender usually lets you shorten the tenure or lower your EMI. Here's how each option affects total interest, with a worked example.
Read →Rules & ChargesLoan Prepayment Charges & Rules: What to Check With Your Lender
What prepayment or foreclosure charges are, when lenders can and can't apply them, and the specific questions to ask before you make a prepayment.
Read →StrategyPart-Payment vs Full Foreclosure: Which Should You Choose
If you have a lump sum available, should you make a part-payment or close the loan entirely? A comparison of both approaches and when each makes more sense.
Read →GuideHow to Use a Loan Prepayment Calculator (Step-by-Step Guide)
A step-by-step walkthrough of entering your loan details into a prepayment calculator, reading the results, and comparing different prepayment scenarios.
Read →Rules & ChargesFloating vs Fixed Rate Loans: How Prepayment Rules Differ
Floating-rate and fixed-rate loans are often treated differently when it comes to prepayment charges and flexibility. Here's what typically changes between the two.
Read →StrategyWhich Loan Should You Prepay First? Home, Car, Personal or Education
If you have multiple loans and limited extra funds, which one should get your prepayment first? A framework based on interest rate, charges and loan purpose.
Read →StrategyPrepayment vs Investing: How to Decide Where Extra Money Should Go
Should extra money go towards prepaying a loan or into investments? A framework based on comparing your loan's interest rate to realistic investment returns.
Read →BasicsWhat Is an Amortization Schedule? How Your EMI Is Split Between Interest and Principal
An amortization schedule shows exactly how each loan payment is divided between interest and principal over time. Here's how to read one and why it matters for prepayment.
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