India, Sept. 21 -- Ananya Sharma, a 32-year-old IT professional in Pune, took a home loan of Rs.60 lakh in 2018 to buy her first apartment. She opted for a 20-year tenure with an EMI of Rs.48,000, ensuring it stayed within 35 per cent of her monthly income. Over time, as her salary increased, she began making partial prepayments of Rs.2-3 lakh annually. By 2025, she had already prepaid Rs.15 lakh, reducing her outstanding tenure by six years. Ananya's disciplined EMI payments, combined with strategic prepayments, helped her save nearly Rs.12 lakh in interest outgo.

But does prepaying a home loan make sense? What are the reasons to prepay a home loan and what should influence your decision? We take a look.

Borrowers must consider first t...