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Save big on interest and shorten your home loan tenure by prepaying your Axis Bank home loan. The Axis Bank home loan prepayment calculator allows you to see the impact of your prepayments in real-time, empowering you to make sound financial choices.
In this guide, you’ll learn how the Axis Bank prepayment calculator works, the steps to use it, and the financial benefits of prepaying your loan. Get expert-backed insights from Credit Dharma to maximize your savings and manage your home loan repayments like a pro.
Save Lakhs on Your Axis Bank Home Loan with Prepayments!
Why Prepay Your Axis Bank Home Loan?
Prepayment is a financial strategy where you repay a portion of your home loan ahead of schedule. This simple step comes with a host of benefits:
| Benefit | Description |
|---|---|
| Lower Interest Costs | By reducing your outstanding principal, prepayment directly slashes the total interest payable on your loan. |
| Shorter Tenure | Prepayments help cut down your loan tenure, allowing you to become debt-free faster. |
| Reduced EMIs | If you prefer, you can opt for lower EMIs while keeping the loan tenure constant. |
| Significant Savings | Depending on your loan amount and tenure, prepayment can save you lakhs of rupees over the loan’s lifetime. |
Imagine owning your home outright years ahead of schedule—that’s the power of prepayment!
Axis Bank Home Loan Prepayment Charges
| Type of Loan | Prepayment Charges |
|---|---|
| Floating Rate Loan (including part payment) | NIL |
| Fixed Rate Loan (including part payment) | 2% of outstanding principal / amount prepaid |
Factors to Consider Before Prepaying a Home Loan
While prepaying home loans seems lucrative, borrowers must evaluate certain aspects beforehand:
Things to Know Before Prepaying Your Axis Bank Home Loan
Before using the Axis Bank home loan prepayment calculator, keep these points in mind:
| Factor | Description |
|---|---|
| Prepayment Charges | 1. Check if your loan agreement includes prepayment penalties. 2. Many loans have no charges for prepaying. |
| Liquidity Matters | 1. Ensure prepayment doesn’t leave you short of emergency funds. 2. Maintain a healthy balance between savings and prepayments. |
| Frequency of Prepayments | Decide whether to make one-time prepayments or regular lump sums based on your cash flow. |
Pro Tip: If your credit score is low, consider working on it for 3-6 months before applying for a home loan.
How Credit Dharma’s Axis Bank Home Loan Prepayment Calculator Works
The Axis Bank Home Loan Prepayment Calculator is a simple yet powerful tool designed to help you understand how prepayments impact your loan. With just a few inputs, it gives you clear insights into interest savings and tenure reduction.
Here’s a step-by-step guide to use Credit Dharma’s Axis Bank Home Loan Prepayment Calculator
- Enter Loan DetailsInput your loan amount, interest rate, and tenure.
- Add EMI DataSpecify the number of EMIs you’ve already paid.
- Input Prepayment AmountEnter the amount you’re planning to prepay.
- CalculateHit the button to see your results instantly.
Example Scenario:
- Loan Amount: ₹1 crore
- Interest Rate: 9% p.a.
- Tenure: 20 years
- EMIs Paid: 12
- Prepayment Amount: ₹2 lakh
Calculator Output:
- Total Interest Saved: ₹8,47,731
- Tenure Reduction: 12 months
This simple prepayment saves lakhs and shaves a year off the loan tenure!
Let’s slash your home loan’s tenure together!
Home Loan Foreclosure Charges by Top Banks
Not all lenders follow the same policy for foreclosure charges. Here’s a list of charges levied by some of the major financial institutions in India.
| Lender | Foreclosure Charges (Floating Loan) | Foreclosure Charges (Fixed Loan) |
|---|---|---|
| SBI | Nil | Nil |
| HDFC | Nil | Up to 2% of outstanding principal |
| ICICI Bank | Nil | 2% on principal (for non-individuals) |
| Kotak Mahindra Bank | Nil | Nil |
| LIC Housing Finance | Nil | Up to 2% of prepaid amount |
| Axis Bank | Nil | Nil |
| PNB Housing Finance | Nil (individuals) | 2% of prepaid amount (non-individuals) |
| Yes Bank | Nil (floating loans) | 4% of outstanding amount (fixed) |
| IDBI Bank | Nil | Nil |
| Bank of Baroda | Nil | Nil |
| TATA Capital | Nil (when paid with own funds) | 2% to 5% (when refinanced) |
| Sammaan Capital | Nil | Nil |
Conclusion
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’s prepayment calculator today to accelerate your journey to debt-freedom! Feel free to reach out to our team of experts for any queries.
Frequently Asked Questions
Axis Bank may impose prepayment charges, particularly on fixed rate home loans. The exact charges can vary, so it’s recommended to consult the specific terms of your loan agreement or contact the bank directly.
Rules for home loan prepayment typically allow borrowers to pay off their loan partially or fully before its maturity. While prepayments on floating rate loans are generally free of charge, fixed rate loans may have penalties. Always check your loan agreement for detailed rules.
Deciding between prepayment or continuing with a home loan depends on your financial situation. Prepayment can save on interest costs but may deplete your cash reserves. Consider your financial goals and consult with a financial advisor to make an informed decision.
When you prepay a home loan, the interest is recalculated on the new principal balance. This results in lower interest charges as the principal amount decreases, reducing the overall cost of the loan over time.
HDFC Home Loan
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