Loan Amount

100000

2 Cr

INR

Interest

6%

30%

%

Tenure (In Months)

12

800

Months

Prepayment Options

Lumpsum

Monthly

Lumpsum Amount

0

Max Amount

INR

End of

1

Max Tenure

Months

Monthly Amount

0

Max Amount

INR

Starting Month

1

Max Tenure

Months

Total Interest:

Rs.

3,280

Tenure Reduced:

0

 Month(s)

Interest Saved:

Rs.

4

Tenure Reduced:

0

 Month(s)

Interest Saved:

Rs.

4

* This is an indicative amount only actual amount may vary. Lendingkart does not provide interest benefit on part payment.

Many borrowers may have purchased loan products from banks and financial institutions. However, the COVID 19 lockdown was sudden. The world changed significantly within just a matter of a few weeks. Moratorium on loans is an emergency measure in which banks would be in favor of extending to only essential loans. In the post-COVID 19 uncertain world of NOW, banks will be encouraging borrowers to close loan accounts. Borrowers will also be mostly ready to close their loan accounts and get over the loan responsibility without delay. Present times are now a matter of basic requirements, products, and industry. Most banks will be considering the basic purpose of the loan before granting moratorium.

Loan prepayment during normalcy

In normal times, several banks would levy a penalty for premature closure of loan accounts, but now this condition might be relaxed. It is not that prepayment of loans can resort only during emergency times like now. Banks provide the option of prepayment schedules to borrowers so that borrowers may bring down EMI load or loan tenure. Banks may levy a minor penalty rate for premature loan account closure yet not for prepayment. Whenever the borrower makes a lump-sum payment for loan prepayment, the loan amount is reduced, so is the EMI or tenure.

Prepayment calculator for home loans

Many salaried and self-employed individuals may have availed home loans. If the home loan has been newly availed, then the borrower may think of postponing house purchase decision and closing the loan account. Those who have purchased house property from builders through bank loans may seek a moratorium on loan. The property of several home buyers may be under construction phase, and the borrower may not be in a position to postpone home-buying decisions anymore. 

The government has given the nod to construction and allied industries to continue work with social distancing and other precautions. Hence many borrowers may not be well placed in closing home loan accounts. 

For home loan accounts closure bank would apply home loan prepayment calculator and close home loan account after deducting applicable charges. For home loan borrowers who want to reduce loan burden, banks may apply lump sum payment on the date on prepayment calculator and return fresh EMI or tenure conditions.

Prepayment calculator for business loans

It is best to return to bank business loan amounts for businesses now classified under unessential categories. Companies should make back end endeavors to return items bought with loan money, get back the money, and pay back to the bank. Businesses under essential categories may not be in a position to call back loans. Hence several businesses may apply for loan moratorium if affected adversely by the lockdown. Banks may permit premature closure of loan account or prepayment of loans to borrowers who do not want to keep the loan. Banks would apply prepayment business loan calculator to return revised condition or premature closure amount.

Prepayment calculator for education loans

Many may try to close their education loan accounts with banks in the present uncertain scenario of COVID 19 lockdown. Those who want to close or reduce their education loan can apply to banks from which they purchased education loan products. Bank would apply an education loan prepayment calculator to return closure amount or reduced loan EMI and tenure conditions.

Prepayment calculator for personal loans

Personal loans not yet used should be closed at earliest in these times of worldwide pandemic. However, if a personal loan amount has already been spent in making purchases, the borrower should try for maximum prepayment without delay. The future times are uncertain, and it is of no benefit to keeping on paying interest money. For prepayment loan account closure, borrowers can apply to lender banks. Lender bank, after feeding relevant inputs in a personal loan prepayment calculator, would return the amount to be paid for account closure.

Prepayment calculator for other loans

Borrowers should attempt without delay to become free of all loan responsibilities as far as possible in these times of emergency situations. Hence borrowers may apply to banks for complete or at least partial settlement of PF loan, credit card loan, car loan, and other loans. Banks would apply other loan prepayment calculators to return the amount required for loan closure. For partial loan settlement, prepayment calculator would return revised loan conditions of reduced EMI or tenure.

Loan typePrepayment during lockdown
Home loanRecommended as much possible
Business loanRecommended except essential category
Education loanRecommended as much possible
Personal loanMost recommended
Other loansMost recommended

Prepayment calculator FAQs:

1.How to apply the prepayment calculator?

To apply prepayment calculator following are the steps:

  • Download prepayment calculator
  • Feed inputs
    • Loan amount
    • EMIs paid till date
    • Lump-sum payment on the date
    • Interest rate
    • Tenure
  • Submit the calculation request
  • Revised loan condition is returned within seconds

2. What is the difference between the prepayment calculator and the EMI calculator?

The EMI calculator returns the EMI amount payable monthly over the loan tenure. The prepayment calculator returns the revised loan condition of EMI or tenure after payment of the lump-sum amount. The EMI calculator requires loan amount, tenure, and interest rate as inputs. The prepayment calculator requires loan amount, EMIs paid till the date of prepayment, prepayment amount, interest rate, and tenure of the loan.

3. What is the difference between the prepayment calculator and the moratorium calculator?

A moratorium on a loan is a grant not to pay EMI for a certain period of say three months. After the moratorium period expires, banks adjust the EMI amount or tenure to account for the unpaid EMI amount. So EMI or tenure of the loan is increased. Moratorium calculator requires loan amount, tenure, interest, EMI’s paid till date as inputs to return revised loan condition. Prepayment calculator, on the other hand, returns revised loan condition after a lump sum amount feed by the borrower.

4. From where can I download the prepayment calculator?

The prepayment calculator has been made available online for download by several financial services providers like Lending Kart. Before downloading from any site, it is recommended that the user should confirm the site security status. Prepayment calculator can be downloaded securely from an accredited loan aggregator official online website.

5.What should I do if bank prepayment calculations do not match with mine?

It is best to contact the bank and be informed regarding loan closure or loan rescheduling conditions applied after lump sum prepayment.

Keywords: Prepayment calculator, EMI calculator