Loan Prepayment

Prepayment means paying extra money toward your loan on top of your regular EMI (monthly installment), which goes directly toward reducing what you still owe (the principal). Because interest is charged on your remaining balance, even small extra payments each month can significantly cut down the total interest you pay and shorten how long it takes to become debt-free. You can also make a one-time lump-sum prepayment in addition to (or instead of) recurring extra payments.