FAQs & Support

Home Loan Prepayment refers to the early repayment of the outstanding loan amount, either partially or fully, before the end of its tenure. It helps borrowers reduce their total interest burden and close the loan sooner. Prepayment is often a strategic move to save money on long-term loans.

Yes, prepayment significantly reduces the interest payable over the tenure. The interest component recalculates by reducing the outstanding principal amount, lowering your overall interest outflow. This makes Home Loan prepayment a cost-saving option.

Yes, prepayment is beneficial if you have surplus funds. It reduces your debt liability, saves on interest payments, and allows you to become debt-free faster. However, it is wise to evaluate prepayment charges (if any) before proceeding.

Yes, prepayment can reduce your monthly EMI payments if you keep the Home Loan tenure the same. It provides financial flexibility by lowering your monthly cash outflow, which can be utilised for other expenses or investments.

Prepayment reduces the repayment tenure by decreasing the outstanding principal amount, provided the EMI remains unchanged. A shorter tenure means significant savings in interest, making prepayment a financially sound choice in the long run.

Yes, most lenders allow partial prepayment. Depending on the lender's terms and preferences, it helps reduce the principal amount, either by lowering your EMI or the remaining loan tenure.

Most lenders do not impose a maximum cap on prepayment amounts, especially for floating-rate loans. However, you should verify with L&T Finance to learn about specific policies, especially for fixed-rate loans.

If possible, prepaying your Home Loan is a more efficient way to save on interest costs. However, increasing EMI amount may work better if you don’t have a lump sum for prepayment but can afford to pay more monthly.

Yes, prepayment is suitable for reducing your debt burden faster and saving on interest payments. However, ensure you don’t deplete your emergency savings when making a prepayment decision.