Loan prepayment: reduce tenure or reduce EMI?

A lump-sum prepayment reduces outstanding principal after (or as of) a given month. Interest after that is charged on a smaller balance, so you either finish earlier, pay a lower EMI, or a mix depending on bank policy and your choice.

Reduce tenure (keep EMI): usually saves more interest; you stay at the higher payment and clear faster. Reduce EMI (keep remaining tenure): frees monthly cash flow; interest savings are often smaller.

WealthStack’s Prepayment calculator lets you set multiple prepays at different months and choose the mode per prepay, including alongside floating rate resets.

Calculators estimate pure interest and schedule impact. Prepayment charges, lock-in periods, and minimum prepay amounts are product-specific — confirm with your lender before acting.

If the question is whether to prepay at all versus investing the surplus, see the prepay-or-invest guide.