Reduce Costs with AXIS Bank Prepayment Calculator

Owning a home holds a lot of significance for many people. However, the cost of purchasing a house often necessitates taking a home loan. As a result, most homeowners find themselves saddled with considerable debt for years. Therefore, many yearn to repay their housing loan quickly. AXIS Bank offers a prepayment facility that enables borrowers to repay their home loan ahead of schedule. This blog elaborates on how AXIS Bank prepayment calculator can help reduce overall interest costs.

Introduction to Home Loan Prepayment

A home loan usually has a long tenure spanning 15-30 years. Prepayment allows borrowers to pay back some part of the loan amount before the tenure ends. As a result, the subsequent EMIs and outstanding loan amounts decline. In turn, the total interest paid over the loan tenure also reduces significantly. AXIS Bank offers both partial and full prepayment options. Customers can use the AXIS Bank prepayment calculator to estimate potential savings from prepaying their home loans.

Benefits of Prepaying Your Housing Loans

Prepaying home loans using surplus funds carries multiple benefits:

  1. Lower interest outflow: Prepaying loans cuts down interest costs as outstanding principal declines faster.
  2. Shorter tenure: With every prepayment, loan tenure reduces, enabling faster debt freedom.
  3. Lower EMIs: Alternatively, borrowers can also opt to reduce EMIs while keeping tenure constant.
  4. Savings on total costs: Overall savings on a home loan can amount to several lakhs of rupees depending on the loan amount and tenure.

Factors to Consider Before Prepaying a Home Loan

While prepaying home loans seems lucrative, borrowers must evaluate certain aspects beforehand:

  1. Emergency funds: Ensure sufficient savings for contingencies before allocating funds for prepayment.
  2. Investment returns: Compare prevailing fixed deposit or equity returns versus home loan interest rates. Returns above 10-11% may outweigh prepayment.
  3. Other loans: Clear off expensive debt like personal loans and credit cards first before considering home loan prepayment.
  4. Prepayment timing: Optimal savings accrue from prepaying in early tenure when interest components in EMIs are maximum.

AXIS Bank Home Loan Prepayment Calculator

Navigating the complexities of home loan management can be a daunting task. This is where CreditDharma Home Loan Prepayment Calculator becomes an indispensable tool. It helps homeowners understand how prepayment can impact their loan’s tenure and the total interest payable. This blog will delve into the nuances of this calculator, ensuring you have all the information needed to make informed decisions.

Key features include:

  1. User-friendly interface: The calculator has a simple layout allowing fast calculations.
  2. Personalized inputs: Borrowers can input their exact home loan details to get customized savings estimate.
  3. Flexible options: Users can modify loan amount, tenure, interest rate as required to match their loan terms.
  4. Detailed output: The calculator shows detailed breakup of regular EMIs, number of EMIs paid, pending EMIs, interest saved based on prepayment amount entered.

How Credit Dharma’s Home Loan Prepayment Calculator Works

Let’s illustrate the use of this calculator with an example. A Borrower had taken a home loan of Rs.1 Crore for 20 years tenure at 9% interest rate p.a. the user has already paid 12 EMI’s. Now the user wants to prepay a lumpsum amount of 2 Lakh rupees as a prepayment.

Loan Amount: Rs.1 Crore
Tenure: 20 years
Interest Rate: 9% p.a.
Instalments Passed: 12
Prepayment Amount: Rs.2 lakh
The calculator will show you the reduced EMI or the new shortened tenure, for this case the Calculator will show you

Total Interest Saved On Loan: Rs.8,47,731
EMI Tenure is reduced by: 12 months


Prepaying home loans substantially reduces interest outgo over long tenures. AXIS Bank offers a stellar prepayment calculator that borrowers can easily utilize to determine possible savings on their housing loans. After considering key aspects, homeowners can decide suitable prepayment amounts and strategy to optimize savings. Use AXIS Bank’s prepayment calculator today to accelerate your journey to debt-freedom!

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