Personal Loan Foreclosure Calculator

Foreclosure is a legal procedure where a borrower can repay the whole loan amount before the loan tenure ends. Through this method, a borrower does not have to pay the Equated Monthly Installments (EMIs) further and it also reduces the interest liability. To repay the loan amount before the completion of loan the tenure, a borrower has to submit an application to the lender where they determine the foreclosure balance. Once the calculation is satisfactory, the borrower can close the loan.

You can easily calculate the outstanding loan amount and the interest amount you can use if you decide to make the part payment of your personal loan using a personal loan prepayment calculator. In addition, the online personal loan calculator with prepayment also helps you to know about the balance amount for foreclosure.

Earlier to know about the prepayment or foreclosure amount, one needed to visit the bank branch and share the loan details. However, you can now calculate the amount for prepayment in a personal loan using a prepayment calculator. To calculate the balance loan amount, the following inputs need to be filled in:-

• Loan Amount - Loan amount can range from ₹ 1,000 to ₹ 75 Lakh.
• Loan Tenure - Loan tenure ranges between 2 months to 72 months.
• Rate of Interest - The percent principal which lender is charging from a borrower
• Number of EMIs Paid - Total number of EMIs which are paid till date.
• Foreclosure Month - Month in which a borrower would like to close the loan.
• Foreclosure Charges - If any charges are levied by a bank for foreclosure of the loan.

The prepayment amount is calculated on the outstanding balance of the loan amount and suppose if you have availed a personal loan of ₹ 3 Lakh loan for a tenure of 5 years at 15%, and let us say you decide to prepay ₹ 50,000 at the end of 1st year. Thus, you can save the interest as follows:

Year	Balance	Normal Annual Repayment EMI	Annual EMI on Partial Repayment	EMI Savings
1st	₹ 3,00,000	₹ 85,644	₹ 85,644	-
2nd	₹ 2,56,442	₹ 85,644	₹ 68,945	₹ 16,698
3rd	₹ 2,05,882	₹ 85,644	₹ 68,945	₹ 16,698
4th	₹ 1,47,195	₹ 85,644	₹ 68,945	₹ 16,698
5th	₹ 79,073	₹ 85,644	₹ 68,945	₹ 16,698

Foreclosure charge is the penalty that lenders levy on early payment of personal loan. Lenders charge foreclosure charges to meet the interest loss from the early closure of the loan. However, as per the guidelines of Reserve Bank of India dated 2nd November 2017, banks and NBFCs cannot charge foreclosure charges if a lender has opted for a floating interest rate and the loan is not taken for the business purpose.

The foreclosure charges levied by top banks on personal loans are:

Bank	Foreclosure Charges
SBI Personal Loan Foreclosure Charges	3%
HDFC Bank Personal Loan Foreclosure Charges	2 - 4%
ICICI Bank Personal Loan Foreclosure Charges	5%
Bajaj Finserv Personal Loan Foreclosure Charges	4%
IDFC First Bank Personal Loan Foreclosure Charges	5% foreclosure charges. Can foreclose after 3 months in case of smart personal loan
Axis Bank	For Loan Amt Approved of 10 Lacs and above-- 0% FC charges after 12 EMIs if closure through OWN FUNDS,1-12 EMI-5%, 13-24 EMI-4%, 25-36 EMI-3% & Above 36 EMI-2%
Tata Capital	Rs. 1,000 to Rs. 5,000
Fullerton India	1 -17 months: 7%, 18 - 23 months: 5%, 24 - 35 months: 3%, After 36 months: Nil
IndusInd Bank	4%
Kotak Bank	Starting from Rs.999

Foreclosure month is a month when a borrower decides to pay off the loan in advance. The date is decided at the time of the agreement. For example, if your loan tenure is for 3 years or 36 months and you decide to pay the loan in 1 year and 6 months then the foreclosure month will be 18 months.

✅How do you calculate personal loan foreclosure?

You can calculate personal loan foreclosure by using a personal loan foreclosure calculator. In the foreclosure calculator for personal loan, you have to fill in the loan amount, interest rate, loan tenure, number of EMIs paid and foreclosure month.

✅How do you foreclose on a loan?

The procedure for foreclosure of personal loans is different for every bank but generally, you need to visit the lender's branch, submit the application form with the required documents and pay the foreclosure amount.

✅Is foreclosure of loan good or bad?

Foreclosure of a loan is good as you pay the loan before the tenure and it saves a lot on the interest amount.

✅What are Preclosure/foreclosure charges?

Preclosure charges are the charges which are levied by the lenders when a borrower pays the loan amount before the tenure gets over. The charges may vary in banks and most of the banks levy prepayment penalty on a personal loan.

✅Does pre-closure of loan affect CIBIL?

Yes, preclosure impact your CIBIL score. It has a good impact on the credit history.