Should I prepay Home Loan Now or Later?

POSTED BY vabo ON February 19, 2015 4:10 pm NO COMMENTS

Dear All,
Thank you for doing all great work of helping here.

I’ve a question regarding home loan repayment. I’ve gone through EMI calculation formula multiple times but could not get the answer.

I’ve a home loan from LIC HFL, details are below.

Initial Lone Amount: 35,00,000.00 INR
Outstanding Loan Amount: 27,95,000.00 INR
Rate of Interest: 10% per annum
Initial Tenure: 300 months
Remaining Tenure: 275 months
Current EMI: 31,952 INR (23,289 INR interest + 8,663 INR principal)

I want to make a prepayment of around 6,00,000 INR (Six Lacs).

However I’m currently in Japan and money is in Japan. I’ve to convert yen to rupees and transfer money back to India for prepayment. Current yen to rupees rates are very poor and may not revive at least 4-5 months.

If I convert money now I’ve to bear around 50,000 INR losses due to poor conversion rates. But in this case I can make prepayment early to save on interest.

In another case I can wait for 4-5 months and convert then make prepayment. However in this case I’ve to pay additional interest.

I’m unable to understand whether to prepay now or later? Which option will save money?
In another words, I want to know how to calculate only interest part and not EMI.

Thank you in advance.

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