Loan and EMI Advisor
Car loan prepayment: save interest or keep the cash?
Car loans are usually fixed-rate with prepayment charges - see if closing early still saves money after the charge.
First result free. per result, 3 revisions included.
Calculations are estimates based on the figures you enter; your lender's statement is the final word. This is general information, not financial advice. Rules on prepayment charges, KFS and rate resets are as issued by the RBI; check your loan agreement.
EMI, prepayment and offer calculator
Your EMI and total interest, what prepayments save (and why keeping the EMI wins), and loan offers compared on total cost including fees.
EMI ₹43,391
Total interest ₹54,13,879
Total paid ₹1,04,13,879
Prepayment: how much you save
| Plan | Loan ends in | Total interest | You save |
|---|---|---|---|
| No prepayment | 20 yr 0 mo | ₹54,13,879 | ₹0 |
| +₹5,000 every month | 15 yr 7 mo | ₹40,24,629 | ₹13,89,250 |
| ₹2,00,000 in year 2, keep EMI (shorter loan) | 18 yr 5 mo | ₹47,54,898 | ₹6,58,981 |
| ₹2,00,000 in year 2, lower EMI (same end date) | 20 yr 0 mo | ₹52,22,721 | ₹1,91,158 |
Keeping the EMI and shortening the loan almost always saves more interest than lowering the EMI.
Compare offers (rate + fees)
EMI ₹43,391 · total cost ₹54,23,879 · effective 8.53%
EMI ₹42,918 · total cost ₹53,59,236 · effective 8.51%
Who it's for
- "My bank increased the tenure instead of the EMI when rates went up - now I'll pay till I'm 62."
- "I got a ₹3 lakh bonus. Prepay the home loan or invest?"
- "Bank A offers 8.35% with ₹50,000 fees, Bank B 8.5% with ₹10,000 - which is cheaper?"
- "How do I close my personal loan early without paying a big penalty?"
Why people use Karzova
A ₹50 lakh home loan at 8.5% for 20 years costs about ₹54 lakh in interest - more than the loan itself. Small, regular prepayments can cut years off it, but banks rarely tell you how, and when they reduce your EMI after a prepayment instead of the tenure, you save far less. Offers are just as confusing: a lower rate with a high processing fee can cost more than a slightly higher rate with none. Karzova shows the exact numbers: your EMI and total interest, what each prepayment saves (keep EMI vs lower EMI), and every offer compared on total cost and effective rate including fees. Then the plan tells you, for your income and savings, how much to prepay and when, whether to switch lenders or ask for a rate cut, the RBI rules on prepayment charges and rate resets, and the tax angle - without selling you a loan.
- ✓ Exact EMI, total interest and schedule for any loan
- ✓ Prepayment simulator: extra every month or a lump sum, keep-EMI vs lower-EMI, with interest saved
- ✓ Compare 2-4 offers on EMI, total cost and effective rate including processing fees
- ✓ A plan for your income and savings: how much to prepay, emergency fund first, when investing beats prepaying
- ✓ Balance transfer check: when switching lenders is worth the fees
- ✓ Your rights: no prepayment penalty on floating-rate loans to individuals, Key Fact Statement with APR, options at rate reset
- ✓ Tax angle: home loan interest and principal in the old regime, and why it rarely changes the decision in the new regime
How it works
- 1Fill in a few details (or click 'Fill with an example').
- 2Click Generate - your result appears in seconds.
- 3Copy it, print it or save as PDF. Edit anything you like.
Karzova vs the alternatives
| Karzova | Bank EMI calculators | Loan marketplaces | Bank relationship manager | |
|---|---|---|---|---|
| Prepayment: keep EMI vs lower EMI | Yes, side by side | Rarely | Sometimes | Rarely explained |
| Offers compared with fees and effective rate | Yes | No | Partly | No |
| Plan for your income and savings | Yes | No | No | Sells products |
| Your RBI rights explained | Yes | No | No | Rarely |
| Independent | Yes - no loans sold | Bank's own | Paid by lenders | Bank's own |
| Price | Calculators free; plan 1 free a day, then ₹99 | Free | Free | Free |
Get your Karzova result
One payment, no subscription. Includes 3 revisions with "Refine this result".
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Frequently asked questions
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.