Home Loan Part Payment? I have heard that private sector banks do not reduce the part payment amount from the principal,but they just reduce the number of EMI\’s, Is this right, if so which banks are these? Example: I pay a regular EMI of Rs.30000 and my outstanding principle is 25 lacs, now if i do a part payment of Rs.90000 some banks do not reduce it from the principle, but reduce 3 EMI\’s equal to 90000, please tell me which bank do this.