Personal Loan Prepayment Calculator

Estimate savings and adjust your prepayments easily for your personal loan.

Use this calculator to understand how making part-payments on your personal loan can reduce your total interest burden and shorten your loan tenure significantly.

₹50K₹50L
%
Mths
12 Months84 Months

Assuming a one-time part payment made today.

Total Interest Saved

₹50,457

Tenure Reduced By

1Y 2M

Impact Summary

New Tenure

46 Months

Effective ROI

10.5%


How Personal Loan Prepayment Works

Personal loan prepayment allows you to repay a portion of your loan amount before the scheduled tenure. This reduces the outstanding principal, resulting in lower interest costs and faster loan closure.

Benefits of Personal Loan Prepayment

Reduces total interest payable
Helps close loan faster
Improves credit score over time
No collateral involved
Better financial flexibility

How Prepayment Impacts Your Personal Loan

Option 1: Reduce Tenure

  • EMI remains same
  • Loan ends earlier
  • Maximum interest savings

Option 2: Reduce EMI

  • Lower monthly EMI
  • Tenure remains same
  • Better monthly cash flow

When Should You Make a Personal Loan Prepayment?

  • When you receive bonuses or surplus income
  • During early loan tenure (higher interest portion)
  • When interest rate is high
  • If prepayment charges are minimal or zero

Important Points to Note

  • Some lenders charge prepayment penalties
  • Charges vary by lender and loan type
  • Check loan agreement before prepaying
  • Floating-rate personal loans usually have lower penalties

Frequently Asked Questions (FAQs)