Pay off your loans faster and save thousands in interest
Avalanche Method
Best for maximum interest savingsPay minimum on all loans, extra on highest interest rate loan first
Snowball Method
Quick psychological wins, builds momentumPay minimum on all loans, extra on smallest balance first
Make Bi-weekly Payments
Extra payments reduce principal fasterPay half EMI every 2 weeks instead of full EMI monthly
Annual Bonus Strategy
Can reduce loan tenure by 2-3 yearsUse annual bonus/incentive for lump sum prepayment
Lump Sum Prepayment
Directly reduces outstanding amountPay unexpected money (gift, tax refund) towards principal
Refinance Loans
1-2% rate reduction saves ₹2-5 lakhsSwitch to lower interest rate when market rates drop
Balance Transfer
Can reduce overall interest burdenTransfer to lower-rate lender (check T&C carefully)
Increase EMI Gradually
Systematic prepayment reduces loan periodRaise EMI by 5% annually as your income grows
Skip Non-essential Spending
Immediate₹2,000-5,000/month extra
Negotiate Rate Reduction
1-2 weeks0.5-1% lower rate
Use Salary Increments
AnnualAccelerate repayment by years
Opt for Shorter Tenure
New loansHigher EMI but less interest
Track your progress through these milestones for motivation:
25% Loan Cleared
Year 2-3
Celebrate progress
50% Loan Cleared
Year 5-7
Review rate reduction
75% Loan Cleared
Year 8-10
Plan final payments
100% Loan Cleared
Varies
Get no-due certificate
Scenario: ₹5 lakh loan @ 10% p.a., standard 5-year tenure
Standard EMI (60 months)
₹10,614/month
Total Amount Paid
₹6,36,840
Total Interest Paid
₹1,36,840
With ₹20,000 Extra Payment (48 months)
Saves ₹35,000
Use our tools to calculate savings and plan your repayment
Calculate Now