New Delhi, May 27 -- For most salaried homeowners, bonuses are the single most powerful but also the most under-utilised tool for reducing long-term interest costs. Unlike monthly income, bonuses arrive as discretionary surplus, creating a strategic choice: deploy them as periodic lump-sum prepayments, or permanently increase EMIs to accelerate repayment.

With a 30 lakh outstanding home loan, this decision has a meaningful impact on interest saved, loan tenure, and financial flexibility. The optimal approach depends less on numbers and more on how lenders actually apply prepayments-and how borrowers manage liquidity over time.

In a typical 20-year home loan, more than 55-60% of total interest is paid in the first half of the tenure. Thi...