Loan Against Property Part-Prepayment-Banner_WC


Loan Against Property Part-Prepayment: Meaning_WC

When you make part-prepayments of your Loan Against Property amount, you volunteer to repay a part of your loan sum in advance, i.e., before your predetermined EMI as per your repayment schedule. You may choose to do this when you have surplus funds and would like to either reduce your EMI amount or the remaining tenor on your loans.

Note that making part-prepayments is not the same as loan foreclosure, as the latter means that you repay the entire outstanding loan amount in one go, before the end of your repayment tenor.

If you are still undecided about whether to prepay parts of your Loan Against Property repayment amount, considering the advantages and disadvantages of this move might help you arrive at a suitable decision.


  • Higher Savings: One of the prime advantages of making part-prepayments is that you directly bring down your total repayment amount, which also means that you will be charged lower interest on your remaining loan balance.
  • Boosts Repayment Capacity: By making part-prepayments on your ongoing Loan Against Property, you also work towards freeing up your repayment capacity which also allows you to have more cash at your disposal for other financial expenses you may have.


  • Prepayment Requirement: For the prepayment amount to qualify as one you need to fulfil the lender’s criteria for part-prepayment. The lender typically requests an amount equal to at least one EMI to be paid in a single transaction for your part-prepayment to count. This may mean reallocating funds within your budget to cover the required amount.

A Loan Against Property is a useful credit facility, but to repay the loan diligently is also a significant responsibility. A move that alleviates your loan obligation is welcome but ensure that it benefits your financial planning in the long run.

Read Also: How to Prepay a Loan Against Property

*Terms and conditions apply

Prepayment of Loan Against Property Article_wc

Loan Against Property Part-Prepayment _PAC_WC

People Also Consider







Pre-Approved Offer