Hi,

I have a home loan of 30 lakhs under subvention scheme from HDFC, which I borrowed in March 2012 for 20 years tenure. Subvention period was of 1.5 years for which there was an adjustment of approx 4.5 Lakh as the advance interest between builder and the bank.

My first EMI for 30 Lakh Loan starts on October 25th, I want to do some partial payment for this loan before my first EMI. Motto is to save some hard earned money against the bank interest and reduce the tenure. When I phoned HDFC customer care they told that your builder will be benefited if you prepay before your first EMI (as the builder has already paid the interest till October), also she told me that you will not be benefited  with reduce tenure or reduce EMI and to get the benefits you have to wait till next EMI. But they failed to explain me how.

Can anyone please help me in this. What are the pros and cons?

Regards,

Lalit