How Interest and principal varies in EMI when I make pre-payment on home loan ?

POSTED BY GAGAN SINGH ON October 2, 2013 11:01 pm ONE COMMENT

Hi Manish

I have recently purchased a flat and am taking a home loan of Rs. 1360000 for a tenure of 25 years. My expected EMI will be Rs.12600. I have taken such long period just to be on the safer side, as I know that under the worst circumstances also, i will be able to pay the EMI of 12600.

However, i am planning to repay in 3-4 years time paying EMI between 35000-40000 per month. I am confused on how interest and principal  part in the EMI will vary if I am doing an extra payment every month. I have read your posts and tried to search over the net, however, this aspect is still not clear.

One reply on this article “How Interest and principal varies in EMI when I make pre-payment on home loan ?”

  1. ashalanshu says:

    Dear Gagan, the easiest answer lies on your own PC/laptop. Please open a loan amortization template in your exl. files. Punch in the required numbers of your loan (ignore the UD $ sign). Now put in the extra payment in the field provided for and you ‘ll get the answer, how your prepayment ‘ll impact the break up of your EMI?

    Thanks

    Ashal

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today