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How much do you save by pre-paying home loan?

Last Updated: Tue, Sep 04, 2012 19:10 hrs
Home Loan

A home is a risk-free asset. But, it is a liability as long as you are servicing a home loan. While most want to get rid of the debt at the earliest, they don't take the trouble of calculating how much they can save by pre-paying the loan - partly or fully. Even financial institutions encourage pre-payment and have done away with the penalty on it for all floating-rate loans.

Pre-payment makes sense, especially if the property is self-occupied and the outstanding is over Rs 15 lakh. The biggest advantage of pre-paying a loan is saving on interest cost. Here's how much you can save by pre-paying at various stages in the loan term.

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  Cities   Price (10g)
  Chennai   Rs. 24500.00 (-0.33%)
  Mumbai   Rs. 25480.00 (-0.08%)
  Delhi   Rs. 25200.00 (0%)
  Kolkata   Rs. 25000.00 (0%)
  Kerala   Rs. 24400.00 (-0.41%)
  Bangalore   Rs. 24450.00 (0%)
  Hyderabad   Rs. 24580.00 (0%)
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