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When it comes to financing your home, finding ways to save on interest and reduce overall loan commitments is key. With the Axis Bank home loan prepayment calculator, you can instantly calculate how partial or full prepayments can significantly lower your debt burden.
Save Lakhs on Your Axis Bank Home Loan with Prepayments!
Axis Bank Home Loan Prepayment Charges
Axis Bank allows borrowers to prepay their home loans, helping them reduce interest payments. However, specific charges and conditions apply based on the loan type and repayment method.
| Type of Loan | Prepayment Charges |
|---|---|
| Floating Rate Loan (including part payment) | NIL |
| Fixed Rate Loan (including part payment) | 2% of outstanding principal / amount prepaid |
Why Prepay Your Axis Bank Home Loan?
Paying off your Axis Bank Home Loan early gives you the chance to become debt-free sooner and focus on other financial goals.
| 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. |
Suggest Read: Axis Bank Home Loan Top Up
How to use Credit Dharma’s Home Loan Prepayment Calculator?
- Enter the loan amount, interest rate, and specify the loan tenure.
- Enter the number of monthly installments (EMIs) you have already paid.
- Specify the amount you plan to prepay towards your home loan.
- The calculator will display the total interest saved and the reduction in your loan tenure or the number of EMIs remaining.
- Use the “Download Your Calculation Report” button to save a detailed report of the calculations.
Suggested Read: Home Loan Prepayment vs Investment
How Much Can You Save Using Axis Bank Home Loan Prepayment?
When you make a prepayment on your Axis Bank home loan—whether it’s a lump-sum amount or regular additional payments—you’re directly reducing your outstanding loan principal.
Since home loan interest is charged on the principal, bringing that principal down faster cuts the total interest you’ll pay over time and can also shorten your loan tenure.
Example
| Aspects | Amount |
|---|---|
| Loan Amount | ₹50,00,000 |
| Rate of Interest | 9.00% p.a. |
| Tenure | 30 years |
| No. of EMIs Paid | 60 EMIs |
| Amount Prepaid | ₹5,00,000 |
Results
| Aspect | Amount |
|---|---|
| Outstanding Principal | ₹47,89,731 |
| EMI | ₹40,231 |
| No. of EMIs Remaining | 216 |
Read More: How to Download Axis Bank Home Loan Statement?
Factors to Consider Before Prepaying a Home Loan
While prepaying home loans seems lucrative, borrowers must evaluate certain aspects beforehand:
Check Out: Axis Bank Home Loan Customer Care
Cut down on interest, not your dreams—choose Axis Bank Home Loan Prepayment.
Conclusion
Becoming a homeowner is a dream—but paying for that home shouldn’t feel like a financial marathon. With the Axis Bank Home Loan Prepayment Calculator at your disposal, you can make well-informed payment decisions that keep your finances healthy and your dreams well within reach.
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.
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