Part-Pay or Foreclose? Unlocking Loan Savings with Smart Interest Math

• Borrowers with surplus cash face a dilemma: part-payment or foreclosure.
• Foreclosure stops interest completely but can incur significant charges and deplete liquidity.
• Part-payment reduces principal, recalculates interest, and offers flexibility with shorter tenure or lower EMIs.
• Early part-payments on long-tenure loans like home loans can save substantial interest without heavy penalties.
• The best option depends on loan type, timing, penalties, and personal cash flow comfort.

Why It Matters: Choose between part-payment and foreclosure based on loan type, charges, and liquidity needs for optimal savings.