What is the rule for part prepayment of a home loan?

The rules for prepayment of a home loan in India varies from lender to lender. It depends on the type of loan, and the specific terms and conditions of your loan agreement. However, here are some key points to remember about home loan part prepayment:

• Prepayment Penalty: Many loan providers impose a prepayment penalty, which varies from lender to lender, if you pay off your loan early. The penalty is typically a percentage of the outstanding loan amount.
• Minimum Part Prepayment: Some loan providers may require you to pay at least 2 months’ EMIs as the minimum part prepayment amount.
• Prepayment Window: Some financial institutions may have a prepayment window during which you can prepay without incurring a penalty. This window is often specified in your loan agreement.
• No Prepayment Penalty: In some cases, lenders may not charge a prepayment penalty if you prepay your loan after a certain period, such as 3 years.
• Prepayment Notice: You might be required to give the lender a certain amount of notice before prepaying your loan.

It's crucial to review your loan agreement carefully to understand the specific prepayment rules that apply to your home loan. If you're considering prepaying your loan, it's advisable to contact your lender directly to inquire about any prepayment penalties or restrictions.