Karzova: frequently asked questions
Loan and EMI Advisor
Is it better to reduce EMI or tenure after a prepayment?
Reducing the tenure (keeping the EMI the same) saves much more interest, because the whole EMI keeps attacking the principal. Lower the EMI only if you need the monthly cash flow. The calculator shows both side by side.
Can my bank charge a penalty for prepaying my home loan?
Not on a floating-rate loan taken by an individual for non-business purposes - RBI doesn't allow prepayment or foreclosure charges on these. Fixed-rate loans and business loans can carry charges; check your Key Fact Statement and sanction letter.
Is a home loan balance transfer worth it?
When the rate difference saves clearly more than all the switching costs over the remaining tenure - typically a gap of 0.4-0.5% or more on a large balance with many years left. First ask your current lender to reprice; a conversion fee is often cheaper than switching.
Should I prepay my loan or invest?
Keep an emergency fund and insurance first, and clear expensive debt (credit cards, personal loans). For a home loan, compare its interest rate with a realistic return you'd earn, after tax and risk. Many people split: prepay a fixed amount and invest the rest.
What is the effective rate of a loan offer?
The interest rate at which the EMIs equal the amount you actually receive after upfront fees. A lower headline rate with high fees can have a higher effective rate. The offer comparison shows it for each lender.
How much does it cost?
The calculators are free and unlimited. Your first written plan each day is free; then ₹99 for a plan with 3 revisions. No subscription.