The first step in making sure that home loan prepayment works as an advantage for the borrower is to keep the home loan EMI unchanged. If you have a home loan of Rs. 30 Lakhs at 10.5% for 20 years, prepaying Rs. 1 Lakhs will mean cutting EMI by Rs. 1000 from Rs. 30,000 per month to Rs. 29,000 per month. Opting for a same EMI option, you can pay off the entire loan in 18 years reducing the overall interest paid on the loan.