Prepayment
Loans term
Prepayment is paying off part or all of a loan ahead of schedule, which directly reduces the outstanding principal.
Because interest is charged on the balance, prepaying early in the tenure — when the balance is highest — saves the most interest. Keeping the EMI the same and shortening the tenure saves more than lowering the EMI.
More loans terms
EMIAn EMI is the fixed amount you pay your lender every month until a loan is repaid — covering both interest and principal.Reducing BalanceReducing-balance interest is charged only on the outstanding loan balance, which shrinks with every EMI — so the interest portion falls over time.Loan TenureThe tenure is the total length of a loan — the number of months or years over which you repay it.CIBIL ScoreA CIBIL score is a 3-digit number (300–900) summarising your credit history, used by lenders to decide whether to lend and at what rate.Floating RateA floating interest rate moves up and down over the life of a loan, tracking a benchmark such as the RBI repo rate.