Paying off part of a loan early, to reduce the EMI or the tenure.
A lump sum paid towards the principal cuts all the interest that sum would have carried. You usually choose whether to keep the EMI and finish sooner, or keep the tenure and pay a smaller EMI.
Shortening the tenure saves more interest. Prepaying early in the loan, when the balance is highest, saves the most.
Short reads that explain how it works before you decide.
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