Will the EMI of the Central Bank home loan change in case of prepayment
CBI offers prepayment of loan amounts at no additional charges in case of the floating interest rate. Whenever one makes a prepayment, the outstanding balance of the principal amount reduces. Now, there are two options for any borrower. He/she can either keep the EMI constant while reducing the tenure or reduce the EMI while keeping the tenure constant. It is always advisable to go for the reduced loan tenure, as you will have to pay less interest to the bank.