As a practice, we do not permit loans that amortize negatively i.e., where the EMI is insufficient to meet the interest component for a home loan. However, in case the EMI for a home loan is falling short of the interest component, the customer is informed immediately and offered one of the following remedial options:
Change the EMI suitably to match the balance tenor, which is the default option
Consider a lump sum part-prepayment
A combination of both depending upon the customer’s convenience