Personal loan foreclosure calculator
What it costs to close your loan today, the interest you stop paying, and whether that beats the charge.
To foreclose, you pay the principal still owed plus the foreclosure charge and 18% GST on it. It pays off early in the loan, when most of the interest is still ahead. On ₹3,00,000 at 14% for 3 years with a 4% charge, closing after 12 EMIs costs ₹2,23,633 and saves about ₹22,446. Near the end, the charge can outweigh the interest you avoid.
- Your EMI
- ₹10,253
- Principal still owed
- ₹2,13,553
- Foreclosure charge (4%)
- ₹8,542
- GST on the charge (18%)
- ₹1,538
- EMIs you skip
- 24
Assumes the charge is on the principal still owed, which is the usual basis; your loan agreement and Key Facts Statement give your lender's exact rule, any lock-in period and the interest for the days since your last EMI. Figures are indicative.
Worked example: ₹3,00,000 at 14% for 3 years, 4% charge
| After 12 EMIs | After 30 EMIs | |
|---|---|---|
| Principal still owed | ₹2,13,553 | ₹59,084 |
| Foreclosure charge + GST | ₹10,080 | ₹2,789 |
| Amount to close | ₹2,23,633 | ₹61,873 |
| Interest you stop paying | ₹32,526 | ₹2,436 |
| Net saving | ₹22,446 | −₹353 |
The EMI is ₹10,253 throughout. In the first year most of each EMI is interest, so closing early avoids a lot of it. By month 30 most of the interest has already been paid, and the 4% charge plus GST is larger than what is left to save.
Foreclosure charges: what RBI's rules say
- Floating-rate loans for personal use: no charge. For floating-rate loans to individuals for non-business purposes, sanctioned or renewed on or after 1 January 2026, lenders can't levy pre-payment or foreclosure charges, and can't set a minimum lock-in (RBI Pre-payment Charges on Loans Directions, 2025).
- Fixed-rate loans: a charge is allowed, if disclosed. Most personal loans are fixed-rate. The lender can charge for foreclosure only if the charge is stated in your sanction letter, loan agreement and Key Facts Statement.
- Check three things before you pay: the charge and how it's calculated, any lock-in (some lenders allow foreclosure only after a set number of EMIs), and the exact closing amount as on the day you pay.
- After you pay: get a No Objection Certificate, and check your credit report a few weeks later to confirm the loan shows as closed, not "settled".
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Questions people ask
How is the personal loan foreclosure amount calculated?
It is the principal you still owe, plus the interest for the days since your last EMI, plus the foreclosure charge and 18% GST on that charge. The principal still owed is what is left after each EMI’s interest part is taken out; the calculator above works it out from your loan amount, rate, tenure and the EMIs you have paid.
Is there a foreclosure charge on a personal loan?
It depends on the rate type. RBI does not allow pre-payment or foreclosure charges on floating-rate loans to individuals for personal (non-business) use that were sanctioned or renewed on or after 1 January 2026. Most personal loans are fixed-rate, and on those the lender can charge a fee, but only one disclosed in your sanction letter, loan agreement and Key Facts Statement.
When is it worth foreclosing a personal loan?
Early in the loan, almost always: most of the interest is still ahead of you. On ₹3,00,000 at 14% for 3 years with a 4% charge, closing after 12 EMIs saves about ₹22,446 even after the charge. Near the end it can cost more than it saves: after 30 EMIs the same loan costs ₹353 more to close.
Does foreclosing a personal loan affect my CIBIL score?
Closing a loan in full does not hurt your score; the account is reported as closed. What hurts is a loan marked “settled”, which means you paid less than you owed. After foreclosing, get a No Objection Certificate from the lender and check your credit report a few weeks later to confirm the account shows as closed.
Foreclosure or part-prepayment: which is better?
Foreclosure closes the loan in one payment. Part-prepayment pays off a chunk and keeps the loan running with a shorter tenure or smaller EMI. If you can’t clear the whole balance, a part-prepayment early in the loan still cuts the interest a lot, but check whether your lender charges for it.
Can I foreclose a personal loan at any time?
Many lenders allow foreclosure only after a set number of EMIs on fixed-rate loans; your loan agreement says when. For floating-rate loans to individuals for personal use sanctioned on or after 1 January 2026, RBI does not allow a minimum lock-in for pre-payment.
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