EMI Prepayment Calculator

Besides a one-time bonus, some borrowers pay an extra ₹50,000 each year toward a personal or education loan. On ₹8 lakh outstanding at 10% with 8 years left, the current EMI is about ₹12,139. This page also prints an indicative interest save of ₹1.8 lakh using a 0.45 × annual-prepay × years heuristic — labelled as indicative because it is not a full schedule.

The cash-flow question

A lecturer in Allahabad with an education loan and a shopkeeper in Rajkot with a business term loan both forget to ask for part-prepayment. IndiaKit shows the live EMI and a cautious save figure so the conversation with the bank has a rupee hook.

The maths on this page

EMI from outstanding, rate, remaining years (standard formula). Indicative save = annual prepay × years × 0.45. Defaults: ₹8,00,000, 10%, 8 years, ₹50,000 extra a year → EMI ≈ ₹12,139, save sketch ₹1,80,000.

The 0.45 factor is a blunt interest-share guess. Early years save more than 45% of the extra cash as interest; late years save less. Demand an amortisation from the lender.

Personal-loan foreclosure charges can be 2–5% in some contracts. Subtract those from ₹1.8 lakh yourself.

₹50,000 yearly extra on an ₹8 lakh loan in Allahabad

A lecturer owes ₹8,00,000 at 10% with 8 years left (EMI about ₹12,139). She can spare ₹50,000 each March bonus. IndiaKit’s indicative save is ₹1,80,000 of interest. She still asks the bank to recompute; she does not cite 0.45 in a complaint.

What a bank still has to confirm

Heuristic save, full EMI formula. No fee, no tax benefit on education-loan interest (that is an ITR deduction topic). Indicative.

Common questions

Why not use the same 0.35 factor as home prepay?

Different product, different remaining life, different form. Both are rough. The lender’s schedule is the only number that pays off the loan.

Does extra payment reduce EMI or tenure by default?

Banks differ. Say which you want in the request letter. This page does not choose.

Is education-loan interest still deductible?

Section 80E has been a deduction for interest on education loans for many filers under old-regime logic. Confirm current availability on incometax.gov.in for your regime year.