Loan Against Property


Our Loans Against Property can help you through life’s biggest moments. Weddings, personal passions, educational fees or career changes - we’ve got you covered. Refinance any existing commercial or residential property at the best rates today.


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Udyog Loan Against Property


Are you an MSME owner looking to scale your business operations? Take your business to new heights with Godrej Capital Udyog Loan Against Property. Our loan solutions enable business owners to get higher loan eligibility by allowing multiple sources of income to be considered. With quick loan approvals and attractive interest rates, our goal is to help your business achieve growth.


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Commercial Property Loan


Take your business to the next level with a Commercial Property Loan that finances construction, extension or improvement to make your business goals become reality. With plans designed for your life, you can rest assured that your business empire is in safe hands.


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Balance Transfer


Transfer your existing loans to Godrej Capital and experience the benefits of lower interest rates, flexible repayment terms, and significant EMI savings. Enjoy higher eligibility, along with a Top-Up loan, to take care of your extra needs.


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Home Loan


Seeking a Home Loan to buy a ready-to-move-in property, an under-construction house, or renovate your current residence? Our Home Loan, featuring low interest rates and flexible EMI plans, is specifically designed to help you accomplish buying your dream home.


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Plot Loan


Found the perfect spot to build your future? Our Plot Loans can help make it yours. Our loans offer you the financial help, low interest rates and flexible payment options you need to construct the home of your dreams.


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Professional Loan for Doctors


Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our professional loans for doctors are here to help you.


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Professional Loan for Doctors


Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our professional loans for doctors are here to help you.


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Professional Loan for CAs


Want to scale your professional practice? We now offer professional loans for doctors and chartered accountants (CAs) to help you expand your existing set-up, hire more staff, buy modern equipment, and fulfil other business requirements to improve and develop your services.


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Business Loan for MSMEs


If you're an entrepreneur with a small business or an MSME and are aspiring to take your venture to greater heights, you're in the right space! While you hustle for your company's success, we stand prepared to accompany you on this journey. Access unparalleled funding possibilities with our MSME-focused business loans, aligning seamlessly with your endeavors for business growth.


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Business Loan for Women


Are you a woman entrepreneur with a vision for business growth? We are excited to fuel your ambitions with our women-centric business loans. Whether you're spearheading a small-scale business or a micro enterprise, our MSME-focused business loans are designed to meet your business needs.


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Business Loan


We give you the courage to take that next step that your business needs. Godrej Capital Business Loans empower you with customizable financing solutions to grow your business to the next level!


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Home Loan Prepayment: Advantages and Disadvantages

All of us want to be debt-free as early as possible. Carrying the burden of debt, however big or small, can be overwhelming. That said, prepayment is a potential tool in the arsenal of borrowers that can help them reduce their debt burden significantly.


When it comes to home loans, prepayment can be a convenient option through which you can repay your loan earlier than the actual loan tenure and be debt-free. However, before choosing it, you must be aware of its pros and cons to make an informed choice. Let’s learn more about the concept of home loan prepayment and its advantages and disadvantages.


What is Home Loan Prepayment?


Home Loan foreclosure or prepayment is a facility through which you can pay, in part or in full, the outstanding principal amount of your home loan. Prepayment of home loans is a facility offered by almost all lenders, subject to certain terms and conditions, and it helps you close a loan before its original tenure.


Also Read: Myth vs. Facts: 4 Home Loan Myths Busted



Advantages of Home Loan Prepayment


Save on Home Loan Interest
Home Loan interest rates are often floating. Prepayment of home loans helps you save on home loan interest along with bringing down the loan tenure. The earlier you prepay, the more interest you can save. Hence, if you want to maximize savings on interest payment, make sure to prepay at the beginning of the loan tenure.


You can use online home loan prepayment calculators, available on your lender’s website, to compute the interest saved and reduction in tenure basis the prepayment amount. However, do note that as a standard policy, the loan tenure gets adjusted if any prepayment is made. But, if you wish to make any changes to the EMI amount, it is advisable to contact your lender and make this request.


Focus on Other Commitments and Peace of Mind
When you become debt-free early, you can easily focus on other commitments. You can channelize the money saved as interest for other investments to grow your wealth. At the same time, it gives you peace of mind as the burden of debt is taken off your shoulders.


Disadvantages of Home Loan Prepayment


Missing Out on Home Loan Tax Benefits
Home loans not only help you accomplish one of the biggest life goals but also help you lower your tax liability. You can claim tax benefits on the principal and interest amount. However, when you prepay your home loan, it brings down the outstanding principal amount and the interest, and you may miss out on tax benefits. Having said that, the benefits largely depend on the tax bracket you fall under and the existing tax laws. To learn more about the tax benefits available on home loans, click here


Also Read: A Guide to Avail Tax Benefits on Home Loans


Paying Prepayment Penalty
Prepayment of home loans may attract a penalty, particularly if it is availed on a fixed interest rate. However, prepayment charges may vary from lender to lender, and you can find more about it in the loan document.


On the other hand, home loans availed on floating interest rates do not attract prepayment charges. But do note that prepayment penalty is a function of a customer being an individual or entity. While individuals don’t pay prepayment penalties, entities do. Hence, it is important to understand home loan prepayment rules well to avoid any surprises later.


Accumulating a Sizeable Prepayment Amount
Accumulating a decent prepayment amount can be a little challenging, particularly when income is under stress. A home loan is a big-ticket commitment and accumulating a sizeable prepayment amount in the initial years of your home loan can be tough. You might need to wait for windfalls in the form of bonuses or maturity of insurance policies to accumulate funds for prepayment which could take considerable years.


The Final Word


While home loan prepayment has its advantages, it’s vital for you to weigh the pros and cons carefully before opting for it. Due diligence will help you make the best out of this option.


Also Read: 5 Things to Consider Before Prepaying Home Loan


Godrej Capital is the financial services arm of Godrej Group which offers Home loans Loan Against Property and other secured loans. With innovative products and offerings, customers can get hassle-free loans on easy terms and conditions. Click here to know more about the offering..



The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements. Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information, please visit