🏠 How to Finish Your Home Loan 5 Years Early
Use EMI increase strategies and planned prepayments to reduce tenure and save lakhs in interest. Here’s a practical, step-by-step approach.
Step 1: Know Your Baseline
Calculate your current EMI and total interest using the Home Loan EMI Calculator. Note tenure and EMI.
Step 2: Pick Your Strategy
- EMI Increase Impact: Boost EMI yearly (step-up) or immediately (one-time). Try different values and see time saved.
- Loan Prepayment: Use bonuses to prepay annually. Compare recurring vs one-time prepayments.
Model both in the EMI Increase Impact Calculator and Loan Prepayment Calculator.
Step 3: Set a Target Year
Enable target year in the One-time tab of EMI Increase to see required EMI or a 6‑month lumpsum prepayment to hit your goal (e.g., 2030).
Step 4: Combine for Maximum Impact
Use a modest step-up (₹1,000–₹2,000/year) and add one prepayment after 6 months using bonuses. This often cuts 4–7 years off a 20-year loan.
Step 5: Execution Tips
- Start conservative; increase as salary grows.
- Build a 6–12 month emergency fund before aggressive increases.
- Confirm prepayment rules/fees with your bank.