Home Loan Prepayment – Part 3: Another Major Prepayment Towards My Home Loan - Lets Explore...
Published on HivePostify by @gungunkrishu · Sun Aug 16 2026
Hey All,
I like to track my home loan regulalry and normally see how much interest is being paid from the monthly EMI [Equated Monthly Instalment (or Installment)]. Also at the same time, I look for opportunities to reduce the interest burden so that a larger portion of the EMI goes towards reducing the principal amount of the loan rather than servicing interest. And how one can do iT? Simply by making prepayments and this is yet another milestone which I am naming - "Home Loan Prepayment – Part 3: Another Major Prepayment Towards My Home Loan" where I went ahead and paid INR 15 lakhs which is approximately US$16K apprxomiately towards my home loan prepayment. Following was the status of my Home Loan before making the prepayment just to give an idea how much of a difference it makes when we decide to make prepayments...
Loan Term Pending - 60 Months EMI - Rs. 72,437/- Rate of Interest - 7.25%
Do you want to see the impact of prepaying ₹15 lakhs towards my home loan? Let me tell you that I am very happy that I made this decision of making the prepayment, as it has brought me much closer to achieving my goal of becoming debt free. The reduction in loan tenure and future interest that I would be paying has drastically reduced as a result I can proudly say that this prepayment is one of the best financial decisions I have taken. So here we go on to see the after effect of the home loan prepayment
Loan Term Pending - 33 Months EMI - Rs. 72,437/- Rate of Interest - 7.25%
So if I were to summarize the impact summary of my recent home loan prepayment summary then here it is..
- My Outstanding Loan Reduced to approximately ₹37 lakhs - The EMI is Kept the Same Which is: ₹72,437 - Remaining Tenure Reduced from about 60 months to 33 months - Loan tenure shortened by approximately 27 months (over 2 years)
| Particulars | Without ₹15 Lakh Prepayment | After ₹15 Lakh Prepayment | | -------------------------- | --------------------------: | ------------------------: | | Outstanding Loan | ₹52,00,000 | ₹37,00,000 | | EMI | ₹72,437 | ₹72,437 | | Remaining Tenure | 60 Months | 33 Months | | Total Future EMI Outflow | ₹43.46 Lakhs | ₹23.90 Lakhs | | Principal Yet to be Repaid | ₹52.00 Lakhs | ₹37.00 Lakhs | | Future Interest Payable | ₹11.46 Lakhs | ₹1.90 Lakhs | | Interest Saved | — | ₹9.56 Lakhs | | Tenure Reduction | — | 27 Months |
As I was talking about the interest part as to how it has drastically reduced can be noticed from the above table. The net savings on interst being paid is close to INR 10 lakhs - which means if I didnt make this prepayment of INR 15 Lakhs then I would have been paying seprate INR 10 Lakhs as interest and this is quite a lot of amount to be paid as interest and finally I did SAVE on the same.. The other interesting row to look at is the Future Interest Payable
Future Interest Payable ₹11.46 Lakhs [to be paid if the prepayment was not done] ₹1.90 Lakh [now to be paid once prepayment has been done]
As a result I am further saving on the future interest to be paid and lets if I dont make any further prepayments I just need to close close to INR 2 lakhs now but where as if the prepayment was not done then you can see the amount is almost 6x interest to be paid. Overall, I am happy with how things have progressed in terms of paying off my home loan. The recent ₹15 lakh prepayment has significantly reduced my loan tenure and future interest burden, bringing me much closer to my goal of becoming debt free. Well this should be it for todays post on - "Home Loan Prepayment – Part 3: Another Major Prepayment Towards My Home Loan - Lets Explore..." Let me know your views in the comment section below.. happy to help with any follow up questions around making home loan prepayments Good Vs Bad... cheers
Image Courtesy:: hdfc home loan, etmoney, chagpt, portal.hdfc.bank.in
Best Regards Paras
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PS:- None of the above is a FINANCIAL Advice. Please DYOR; Do your own research. I have a personal interest in blockchain, stocks, and cryptocurrencies and actively invest in emerging projects. Also I am using ChatGpt for structing of the table content in markdown language at times...
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Tags: #loan#homeloan#home#prepayment#india#arcadecolony#strategy#debt#freedom