Reduce EMI or reduce tenure — which is better?
Reducing the tenure saves the most interest, because you keep paying the same EMI but knock out the principal faster. Reducing the EMI eases your monthly cash flow but saves less overall. Pick tenure-reduction if your goal is to pay the least interest; pick EMI-reduction if you need breathing room in your monthly budget.
No penalty: floating-rate home loans for individuals carry no prepayment charges (part or full) under long-standing RBI rules, consolidated by the 2025 Directions — so nothing eats into your savings. Read the RBI rule →
Tip: prepay early
EMIs are interest-heavy in the early years, so a prepayment made early saves far more than the same amount paid near the end of the loan.
Not sure prepaying beats investing? Compare prepay vs SIP →
General information, not financial advice. Figures are illustrative. Last updated June 2026.