Can I prepay my loan, and are there prepayment penalties?

The RBI prohibits banks from charging prepayment penalties on floating-rate loans (home loans, most personal loans). Fixed-rate loans may carry a penalty of 1–3% on the prepaid amount. Prepaying a ₹50 lakh home loan by ₹5 lakh in year 5 can reduce your total interest payout by ₹8–₹12 lakh.