Loan
Tenure Reduction
Also known as: Term Reduction, Period Reduction
Shortening the loan repayment period through prepayments while keeping EMI constant.
Detailed Explanation
Tenure reduction is the preferred way to handle loan prepayments where the bank reduces the remaining loan period while keeping your EMI unchanged. This saves more interest compared to EMI reduction because you eliminate multiple future interest payments. For home loans, always choose tenure reduction over EMI reduction for maximum savings.