Recurring Part Payments: How Small Extra Payments Add Up
If you want to **save on interest** and **shorten your loan tenure**, making **recurring part payments** is one of the smartest financial moves. Unlike a one-time lump sum, recurring payments allow you to **systematically reduce debt** without straining your budget. Let’s explore how it works.
💡 What Are Recurring Part Payments?
A recurring part payment is when you pay an **extra fixed amount** at regular intervals (monthly, quarterly, or yearly) **on top of your EMI**.
For example:
- Your home loan EMI: ₹30,000/month
- Extra payment: ₹5,000 every month
- Total payment: ₹35,000/month
💰 Why Choose Recurring Part Payments?
1️⃣ Easier to Budget
Unlike a large lump sum, small extra payments are **easier to manage** monthly.
2️⃣ Compound Interest Works in Your Favor
Reduces principal faster, **lowering interest accumulation** over time.
3️⃣ Flexible Frequency
Choose **monthly, quarterly, or yearly** payments based on cash flow.
4️⃣ Shorter Loan Tenure
Can cut loan duration **by years** without increasing EMI burden.
📈 How Recurring Part Payments Save You Money
Let’s say you have a **₹50 lakh home loan** at **8.5% interest** for **20 years**:
| Scenario | Total Interest Paid | Loan Tenure |
|---|---|---|
| No Part Payments | ₹53.2 lakhs | 20 years |
| + ₹5,000/month extra | ₹38.7 lakhs | 15 years 4 months |
Result: You save **₹14.5 lakhs** and **4.5 years** of payments!
🚀 How to Start Recurring Part Payments
Check Prepayment Rules
Most banks allow **free part payments on floating-rate loans**. Fixed-rate loans may have penalties.
Set a Budget
Start small (e.g., **₹2,000–₹5,000/month**) and increase gradually.
Automate Payments
Set up **auto-debit** so you never miss an extra payment.
📱 Calculate Your Savings
Use our Recurring Part Payment Calculator to see:
- How much interest you’ll save
- How much faster you’ll repay your loan
- The best payment frequency for your budget
Start Saving Today!
Even small extra payments can lead to big savings over time.
Try the Recurring Payment Calculator