Personal Loan Prepayment Calculator

Personal Loan Prepayment Calculator Online

Save the interest amount and live your life swiftly without any stress! Prepayment of a personal loan simply means paying the principal amount before completing your loan tenure. You can partially or completely pay the principal amount.

Use the Urban Money personal loan prepayment calculator. It helps you understand the EMI, interest rate, and other important factors.

Personal Loan Prepayment Benefits

The personal loan prepayment benefits are as follows:

• Free from Debt Easily

To live a debt-free life without any stress, you can collect some amount and deposit it as a prepayment of the principal amount of your loan. Prepayment of personal loans also helps reduce EMI costs as the principal amount will be reduced by some percentage.

• Lower the Burden

Prepayment of personal loans does not mean that you have to pay the complete amount at once. You can prepay your loan amount partially as well. Though you won’t be able to save any amount on the personal loan interest, the debt will be a lot less that way. Prepaying your outstanding loan also decreases the unpaid principal amount. Thus, the EMIs will be down on the prevailing interest amount.

• Save on Interest Amount

You must have sufficient funds to repay the complete loan amount in the earlier days of your tenure. Most banks and financial institutions have a one year lock-in period. It means that you cannot repay your loan amount partially or completely for a year. However, once the one year period is over, you can prepay the outstanding loan and save a good amount.

How Does a Personal Loan EMI Prepayment Calculator Work?

A personal loan EMI calculator with prepayment helps revise the loan prerequisite of EMI. The prepayment personal loan calculator requires you to enter the loan amount, the tenure, and interest rates in its required fields.

If you are already repaying for a personal loan, the personal loan prepayment calculator would require the remaining loan amount, EMIs paid to date, the prepayment amount, interest rate, and tenure of your loan. You will learn how much money you will save on the EMIs using a personal loan EMI calculator with a prepayment option.

How to Use the Urban Money Prepayment Calculator?

You can use the Urban Money personal loan prepayment calculator by following the steps below:

Step 1: Enter the numbers and set a principal loan amount.

Step 2: Enter the time period for which you want a loan.

Step 3: Enter the interest rate of your preferred bank.

Step 4: Choose the Part Payment Amount.

The calculator will auto-generate your revised EMI plan, tenure, and total savings.

Planning to switch lenders or compare offers? Check our Compare Personal Loans tool to make informed decisions.

Personal Loan Prepayment Charges Calculations 

When you are planning to make a partial payment or close the loan entirely, need to understand what it might cost for your loan amount. Banks often charge fees for foreclosure or part payment, and these charges can vary by lenders.

To help you decide, we created a simple table. It shows prepayment charges from top Indian banks in 2025.

Bank / NBFC	Lock-in Period	Prepayment Charges	Part-Payment Policy
HDFC Bank	12 EMIs	2–4% of outstanding principal	Allowed after lock-in, up to 25% annually
ICICI Bank	12 months	3–5% of principal	Allowed after lock-in
SBI	12 months	Nil (floating rate) / 2–3% (fixed rate)	Partial allowed
Axis Bank	12 months	2–5%	Partial allowed post lock-in
Kotak Mahindra Bank	12 months	₹500 + GST per instance	Part payment up to 25% annually
Bajaj Finserv	12 months	4%	Part-prepayment allowed, multiple times
Yes Bank	12 EMIs	2–4% of principal due	Allowed
IDFC First Bank	6 months	2–3%	Allowed
IndusInd Bank	12 EMIs / 6 EMIs	4% of principal due	Allowed
HSBC	As per loan terms	Up to 3.75% of principal outstanding	Allowed
Citibank	Discretionary	Varies	Allowed
IDBI Bank	6 months	2% if prepaid within 6 months	Allowed

Note: Charges vary by loan agreement and are subject to change. Please confirm with the respective bank.

Tips for Maximising Savings on Prepayment Calculations

• Start Early: The sooner you begin prepaying, the better. Since most of the interest is charged in the early months, even a small payment early on can lead to big savings.
• Know Your Bank’s Rules: Before making any extra payments, check if your bank has a lock-in period or charges a penalty. Sometimes, the fees can cancel out the benefits—so it’s worth doing the math.
• Make Extra Payments When You Can: You don’t need to wait for a lump sum. Even small, regular part-payments can chip away at your principal and reduce your future EMIs.
• Compare Before You Commit: Not all banks treat prepayments the same. Some let you make part-payments for free after a certain time—others charge for it. A quick comparison can help you choose the most flexible option.
• Use Your Windfalls Wisely: Got a bonus, tax refund, or incentive? Instead of spending it all, consider using a portion to reduce your loan. It’s a smart way to cut down your debt without feeling the pinch.

Partial vs. Full Prepayment of Personal loan

When it comes to reducing your personal loan burden, both partial and full prepayment options can be effective. However, the right choice depends on your financial situation and long-term goals.

Feature	Partial Prepayment	Full Prepayment
Meaning	Paying part of the loan principal along with regular EMIs	Paying off the entire loan amount at once before the end of the loan period
Main Benefit	Reduces future interest and lowers EMIs or loan duration	Clears all debt and saves maximum interest
Flexibility	Can be done multiple times (as per bank rules)	One-time payment to close the loan
Impact on Loan	Lowers principal and interest gradually	Ends the loan completely
Charges	May include small fees depending on the lender	Usually 2–5% of the remaining loan amount
Restrictions	Some banks limit how often you can make partial payments	Some banks require a lock-in period before allowing full payment
Effect on Credit Score	Slight improvement due to reduced liability	Strong improvement by closing the loan early
Best For	People with extra money occasionally	People who have enough savings to pay off the full loan

Factors Affecting Personal Loan Prepayment

The factors affecting personal loan prepayment are as follows:

• Tax Benefits

The Income Tax Act, under Section 80C, allows Rs. 1.5 lakh from tax deduction annually. However, if you are doing full prepayment, you won’t be able to avail any tax benefit. But, if you opt for partial prepayment, the tax benefits will decrease considerably.

• Rate of Interest

The interest rate on personal loans is higher than that of home loans. This is why it is advisable to prepay the principal amount of your personal loan. You can use the personal loan prepayment calculator and calculate the rate of interest e to pay either partial prepayment or full to free yourself from debts.

• Ideal Time in the Tenure

Prepayment of personal loans reduces the interest being charged on your principal amount. You can easily use calculator with prepayment for personal loans and see the outflow of interest. However, the interest will be higher in the initial years of your loan tenure. Thus, you must prepay the loan in the initial years. Also, if you prepay the amounts later, you won’t be able to enjoy several benefits.

• Charges Levied on Prepayment

If you prepay the principal amount, you will be charged 2% extra for the prepayment. Banks and other financial institutions levy these charges to safeguard them from the loss of interest they would have earned in the future.

Explore More Personal Loan Tools & Guides

• Use Loan Foreclosure Calculator
• Check Personal Loan Prepayment Charges
• Understand Personal Loan Process