Are there prepayment penalty charges on home loans?

Under RBI guidelines, banks and housing finance companies cannot charge prepayment penalties on floating-rate home loans sanctioned to individual borrowers.

Mortgage Prepayment Calculator

Loan & Prepayment Details

Outstanding Loan Amount

₹

Interest Rate

Remaining Loan Tenure

Yrs

Mos

Extra Payment Amount

₹

Payment Frequency

Prepayment Savings

Total Interest Saved

₹0

Time Saved

Comparison

Without PrepaymentWith Prepayment

Total Interest₹0₹0

Total Paid₹0₹0

Guide & Methodology

About the Mortgage & Home Loan Prepayment Calculator

Calculate how much interest you save and how many years you shave off your home loan by making lump-sum or recurring prepayments.

What this calculator does

Calculates exact interest savings achieved by making periodic or one-time prepayments.
Shows how prepayments accelerate principal reduction and shorten loan tenure.
Compares option of reducing monthly EMI vs. reducing total loan tenure.

How it Works & Key Inputs

Step 1

Existing Loan Details

Enter loan balance, current interest rate, and remaining months.

Step 2

Prepayment Strategy

Input one-time lump-sum prepayment, annual bonus prepayment, or monthly extra EMI.

Step 3

Analyze Savings

View interest saved and total years cut from your loan.

Core Calculation Parameters

Remaining PrincipalCurrent outstanding home loan balance.

Prepayment AmountExtra capital paid directly toward principal.

FrequencyOne-time, yearly, or monthly recurring.

Formula & Calculation Logic

Mathematical Model

Interest Saved = Total Interest (Original) - Total Interest (With Prepayments)

Accelerated amortization reduction formula.

Variables Breakdown

Direct Principal Reduction100% of prepayment reduces outstanding balance immediately

Frequently Asked Questions (FAQ)

Disclaimer: This calculator is provided for educational and illustrative purposes only. Actual financial outcomes may vary based on statutory changes, lender terms, fund fees, and prevailing market dynamics.