I have 2 loans, loan A and loan B, for the exact same amount , same tenure and same interest rate. I am planning to do a part payment. I am trying to figure out whether to put all of the part payment on one loan OR divide it into 2? Will they make any difference at all? While this may sound naive I just wanted to make sure I don’t miss out on any advantages either way.

  • 1
    You've tagged this question "home-loan". Are these loans both mortgages? Are they for the same property?
    – yoozer8
    Apr 22, 2019 at 13:13
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    What do you mean by "part payment"? You mean a payment in addition to your scheduled payment, or some fraction of your scheduled payment?
    – D Stanley
    Apr 22, 2019 at 13:50

2 Answers 2


There is actually a meaningful difference.

Say you have two loans of 50k each....

If you accelerate payment on one and pay it off (at some point), the amount YOU MUST pay per month goes down by half.

BUT if you only pay off 1/2 of each.. .you still have the same monthly obligation. So while the amount you put in is mathematically the same, and the amount you still owe is mathematically the same, the monthly obligation is different by half. (which is a big deal to most people)

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    Consider emphasizing the minimum payment due for each loan, rather than the principal balance.
    – chepner
    Apr 22, 2019 at 19:03

If the loans are of the same amount it doesn't make any difference if you pay on one or divide by 2.

If this is home loan (also called mortgage) there could be difference in taxation benefits. You need to add country tag as it's different in different jurisdiction.


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