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Paying off several loans?

Many loans, one plan: which do you close first?

  • The loan to target first
  • When each closes and you're debt-free
  • How your EMIs fall along the way
Interest you save
₹18.35 L
Debt-free in Jul 2034, 9 yrs 11 mo sooner than on EMIs alone.
Debt-free
Jul 2034
Interest left
₹17.52 L
EMIs today
₹58,900
a month
Close first
Personal loan
  • Interest you still pay₹17.52 L49%
  • Interest you save₹18.35 L51%

Which loan closes when

In the order your plan closes them. Highest rate first.

  1. Personal loan14% · ₹3 L owedCloses Mar 2028 · 1 yr 7 mo sooner

    frees ₹10,300 a month

  2. Education loan10% · ₹2.5 L owedCloses Dec 2028 · 5 yrs 3 mo sooner

    frees ₹4,000 a month

  3. Car loan9.5% · ₹6 L owedCloses Nov 2029 · 2 yrs sooner

    frees ₹12,600 a month

  4. Home loan8.5% · ₹35 L owedCloses Jul 2034 · 9 yrs 11 mo sooner

    frees ₹32,000 a month

Your inputs

What this means

  • New regime: no tax break on your Home loan, so it ranks at its full 8.5%.
    Why?

    Home-loan interest up to ₹2L a year (24(b)) and education-loan interest (80E) are deductible in the old regime. Interest paid is counted in full.

  • Put the extra ₹10,000 on your Personal loan first: at 14% it costs the most interest of your loans.
    Why?

    Keep paying every other EMI as usual. Once it's closed, the extra moves to the next loan in the list above.

  • Highest rate first saves ₹14.4K more than smallest balance first.
    Why?

    Money put on the costliest loan stops the most interest from building up.

  • Need breathing room? Biggest EMI relief first frees ₹10,300 a month by Mar 2028.
    Why?

    The loan with the highest EMI for what's left closes first, so each rupee you put in frees the most monthly cash.

  • Rolling each closed EMI into the next loan makes you debt-free 4 yrs 11 mo sooner than taking it back as cash.
  • Your Personal loan at 14% costs more than investments are likely to earn: clear it before investing more.
More details

Your EMIs, month by month

What you're bound to pay each month. Each step down is a loan closing; until you're debt-free you keep paying ₹68,900 in all, by choice.

Three ways to order it

  • EMIs aloneNothing extraDebt-free 2044
  • Highest rate firstSaves the most interest · first loan gone Mar 20289 yrs 11 mo sooner · saves ₹18.35 L
  • Smallest balance firstSmall loans go first · first loan gone Jun 20289 yrs 10 mo sooner · saves ₹18.2 L
  • Biggest EMI relief firstFrees monthly cash soonest · first loan gone Mar 20289 yrs 11 mo sooner · saves ₹18.33 L

How it's calculated

  • Each month: every loan is charged a month's interest (rate ÷ 12 on what's owed) and paid its EMI. Your extra amount then goes to one loan at a time, in the order you pick.
  • Highest rate first (the debt avalanche) targets the costliest loan. Smallest balance first (the debt snowball) targets the smallest. Biggest EMI relief first targets the loan with the highest EMI for each rupee still owed: closing it frees the most monthly cash per rupee you put in.
  • When a loan closes, its EMI either rolls on to the next loan, or comes back to you as cash.

Rates stay as they are today. Prepayment charges and tax benefits on home and education loans are left out: check with your lender before prepaying a fixed-rate loan.

Tax figures follow Budget 2025 rules, for FY 2025-26 onward.

Common questions

Should I pay off the highest-interest loan or the smallest loan first?
Highest interest first always costs the least in total. Smallest first closes a loan sooner, which some people find motivating. With Indian loans the gap is often small, so pick the order you'll stick with.
Which loan should I close first to improve my monthly cash flow?
The one with the biggest EMI for what's still owed, usually a short loan that's nearly done. Closing it frees its whole EMI for a small payment. This planner calls it biggest EMI relief first.
Should I prepay my home loan or my personal loan first?
Usually the personal loan, or any credit card balance. They charge far more than a home loan, and home loan interest may also cut your tax under the old regime.
What happens to the EMI when a loan is closed?
It's yours again. Rolling it into the next loan clears all your debt fastest; keeping it gives you breathing room each month. The planner shows both.
Does tax change which loan I should clear first?
In the old regime, yes. Home-loan interest up to ₹2 lakh a year (Section 24(b)) and education-loan interest (Section 80E, up to 8 years) come off your tax, so those loans cost less than their rate and rank lower. Loans with no break, such as personal, car and credit-card loans, rank at their full rate. In the new regime every loan ranks at its full rate. The interest you pay is always counted in full.