A prepayment reduces the principal directly. A smaller principal means less interest every following month, so with the same EMI the loan ends sooner.

Keeping the EMI the same and shortening the tenure usually saves more interest. Reducing the EMI eases your monthly budget but saves less.

Under RBI rules, banks cannot charge prepayment or foreclosure fees on floating-rate loans to individuals. Fixed-rate loans may carry a charge, so ask your bank.

It depends on your loan rate, expected investment returns, tax and your emergency fund. Talk to a financial adviser if you need help deciding.