# Prepaying a home loan? Early years offer maximum interest savings 2026-08-09T08:44:09+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Prepaying a home loan in its early years can generate significant interest savings because EMIs are front-loaded with interest during that period. A borrower with a Rs 45 lakh loan at 8.5 per cent for 20 years who makes a Rs 5 lakh prepayment reduces the principal directly, cutting future interest cost. The benefit is highest in the first half of the tenure. However, borrowers must check loan terms: floating-rate home loans under central banking regulations typically permit prepayment without penalty, whereas fixed-rate personal or auto loans often carry a prepayment charge. The decision to prepay ultimately depends on whether the surplus cash could earn a higher return elsewhere. ## Coverage - timesnownews.com Tags: EMI, Home loan, Interest savings, Loan terms, personal finance, Prepayment Canonical: https://indianopinion.org/prepaying-a-home-loan-early-years-offer-maximum-interest-savings/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/prepaying-a-home-loan-early-years-offer-maximum-interest-savings/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.