Investor doubt: How to make SBI home loan part payment and track EMI/tenure changes?

Hi, I currently have a home loan from SBI with an EMI of Rs 15,000/month and Rs 1,000/month separately deducted as home loan insurance. I’m planning to make a lumpsum part payment equal to 10 EMIs and need some clarity before proceeding.

Can I make this part payment via the SBI YONO app or is branch visit better?

Should I calculate Rs 1.5L (EMI × 10) or Rs 1.6L (EMI + insurance × 10)?

Where can I track EMI reduction or tenure change post-payment in the app/portal?

Would love to hear from you as many have given me AI advice, which is misleading and confusing.

Advice by Akhil Rathi, Head – Financial Advisory at 1 Finance

Most lenders today allow borrowers to make part-prepayments conveniently through mobile apps or internet banking, removing the need to visit a branch. When making a prepayment, you can either reduce your EMI or shorten the loan tenure. Reducing the EMI helps ease monthly cash flow, but reducing the tenure is usually more cost-effective since it directly lowers the overall interest burden.

For calculation, only the EMI portion should be considered—for example, 10 EMIs of ₹15,000 each would mean a prepayment of ₹1.5 lakh, while any separate deductions such as insurance premiums are not part of the loan repayment.

Before going ahead, it is wise to check your amortization schedule to see how much of the pending EMIs still go toward interest. This helps assess whether the prepayment will meaningfully reduce costs or if investing the amount in a safe instrument would be more beneficial. Once the prepayment is processed, the lender updates the loan account with revised EMI or tenure details, usually within a few days, and provides an updated statement that can be tracked online.

Part prepayment of a home loan is one of the most effective ways to cut long-term interest costs, provided it is planned carefully. Home loan prepayment refers to paying back your loan ahead of the agreed tenure. This may involve settling the full outstanding balance at once or making a part-payment directly towards the principal. Borrowers often opt for prepayment to lower the total interest outgo, shorten the repayment period, and achieve debt-free status sooner. Prepayment charges are fees that banks or lenders may levy if a borrower repays part or all of their home loan before the original tenure ends.

These charges compensate the lender for the loss of future interest income. For fixed-rate home loans, prepayment penalties typically range between 1% and 3% of the amount prepaid. For floating-rate home loans taken by individual borrowers, the RBI has mandated that no prepayment charges apply for loans sanctioned on or after January 1. However, loans disbursed before this date may still attract a 2% penalty. The fee is calculated on the prepaid amount. For instance, prepaying Rs 5 lakh with a 2% charge would cost an additional Rs 10,000.