EMI & Interest
EMI Planning: Tenure, Rate And The Cost Of Prepayment
A longer tenure lowers the monthly EMI but raises total interest. Here is how to model the trade-off before you commit.
Tenure is a trade-off, not a discount
Extending tenure reduces the monthly outflow but increases the total interest paid over the life of the loan. Use an EMI calculator to compare scenarios before signing.
Prepayment mechanics
Prepayments made early in the schedule reduce interest more than the same amount paid later, because the outstanding principal is highest at the start. Prepayment terms vary by lender and loan type.
This article is educational and does not constitute a loan offer or guarantee approval. Actual terms depend on lender policy and applicant assessment.