Personal Loan Foreclosure Calculator

A Personal Loan foreclosure calculator is a tool that helps you calculate the charges and potential savings associated with foreclosing your Personal Loan before the end of the tenure. This tool simplifies the process by accurately calculating foreclosure charges, savings and the total amount payable. Whether planning to foreclose or explore options, this calculator ensures better financial planning.

Foreclosure Calculator

Calculate Foreclosure for Your Personal Loan

Preferred loan amount

50,000
30,00,000

Interest rate (per annum)

%
11%
24%

Loan tenure (months)

12 months
72 months

Estimated EMI

per month
  • 36,690
  • Interest payable

    52,41, 690

How to Use a Personal Loan Foreclosure Calculator?

The loan foreclosure calculator for Personal Loan is designed for simplicity. Follow these steps to use it effectively:

1. Enter Loan Details

Input your original loan amount, interest rate, and loan tenure.

2. Add EMI Information

Provide details of the EMI amount you are currently paying and the number of EMIs completed.

3. Enter Foreclosure Charges

Input the percentage of foreclosure charges as specified in your loan agreement.

4. View Results

The calculator will display the total outstanding loan amount, foreclosure charges, and potential savings from foreclosing.

How is Personal Loan Foreclosure Calculated?

Calculating Personal Loan foreclosure involves the following steps:

1. Determine the Outstanding Loan Balance

Use the loan's amortisation schedule to find the remaining principal amount.

2. Add Foreclosure Charges

Calculate charges. It is usually 2-4% of the outstanding balance.

3. Calculate Interest Savings

Subtract the remaining interest cost from the total charges to evaluate potential savings.

4. Include Additional Costs

Factor in any other fees, such as documentation charges or administrative costs.

Example

Loan Amount: ₹ 5,00,000

Interest Rate: 12%

Tenure: 5 years (60 months)

EMIs Paid: 24

Outstanding Balance: ₹ 3,00,000

Foreclosure Charges: 3%

Foreclosure Charges = 3% of ₹ 3,00,000 = ₹ 9,000

Interest Saved = ₹ 30,000 (remaining interest)

Net Savings = ₹ 30,000 - ₹ 9,000 = ₹ 21,000

Types of Personal Loan Closure

Personal Loans can be closed in two primary ways:

1. Foreclosure

Paying the outstanding principal in one go before the end of the loan tenure.

2. Prepayment

Making partial payments towards the principal to reduce the loan amount and interest.

3. Key Differences

- Foreclosure eliminates the loan completely, whereas prepayment reduces the outstanding balance.

- Both options help save on interest, but foreclosure results in quicker loan closure.

Documents Required for Personal Loan Foreclosure
Document TypeRequired Document & Checks
Identity ProofPAN and any one of the following- Aadhaar Card |
Driving License | Passport | Voter ID | Job card by NREGA |
Letter issued by the National Population Register
containing details of name and address
Address ProofUtility bills (not older than 2 months) | Aadhaar Card |
Driving License | Passport | Voter ID etc
Income ProofIncome proofs vary for different professionals
across salaried, non-salaried and self-employed.

Please find the easy detailed list of required documents here

TypeDocument
SalariedLast 3 month's salary slips / Form 16 /
Last 3 month's bank statement reflecting
Self EmployedLatest Income Tax Return (ITR)
Bank StatementLast 3 month's statement is mandatory
Residence Ownership ProofNot mandatory

Fees & Charges for Personal Loan Foreclosure

List of all fees and charges

TypeInterest Rate and Charges
Loan Processing Fees (non-refundable):Upto 3%* of Loan Amount + applicable taxes
EMI Dishonour/ Bounce Charges:As shown in the table below
Sanctioned Loan AmountCharges
< ₹ 5 Lakh₹ 500
₹ 5 Lakh - ₹ 30 Lakh₹ 1000
Late Payment Charges (LPC)/ Penal Charges:2% (p.m.) on EMI overdue + applicable taxes
*LPC revised from 3% to 2% per month on overdue EMI w.e.f. 4th Dec'23
*Taxes applicable on LPC w.e.f. 1st Apr'24
Part Payment Charges:Up to 5% of pre-paid amount + applicable taxes
Foreclosure Charges:5% of POS (Principal Outstanding) + applicable taxes
Legal/ Recovery Charges:As per actuals
Duplicate NOC Charges: First 3 paper copies - free of cost
From 4th Paper copy - ₹250 + applicable taxes
Repayment Swap charges (per swap):₹500 + applicable taxes (applicable only for branch walk-ins)
Loan Cancellation Charge:Nil - for 3 days from date of disbursal
From 4th day - 5%+ applicable taxes (on the outstanding loan amount)
Document Charges:Nil for Statement of Account (SOA), Repayment Schedule, Foreclosure Letter, Welcome Kit
Annual Maintainance Charges (AMC):Nil

*Terms & Conditions Apply. All actual charges will be as per Key Fact Statement (KFS) shared by the company.

Benefits of Personal Loan Foreclosure Calculator

The Personal Loan foreclosure calculator offers several advantages:

1. Transparency:

Clear insights into charges and savings.

2. Time-Saving:

Instant results without manual calculations.

3. Accuracy

Eliminates human errors in computations.

4. Better Financial Planning:

Assists in evaluating if foreclosure is financially beneficial.

pdp-home-loan

Personal Loan Foreclosure Calculator

FAQs & Support

View all

How does a Personal Loan foreclosure calculator work?

It computes foreclosure costs and savings with details like loan amount, interest rate, tenure, and completed EMIs.

Can I calculate the savings from foreclosing a Personal Loan?

Yes, the calculator shows interest savings and net benefits from foreclosure.

Can I foreclose my Personal Loan anytime?

You can foreclose your loan only after repaying at least 6 months’ EMI.

What information do I need to use a Personal Loan foreclosure calculator?

Loan amount, tenure, interest rate, EMIs paid and foreclosure charges.

Is there a fee for using a Personal Loan foreclosure calculator?

Most calculators are free to use.

Is it necessary to pay foreclosure charges?

Yes, it is necessary to pay foreclosure charges as per the loan agreement.

How do you avoid Personal Loan foreclosure charges?

Choose a loan with no foreclosure penalties or negotiate terms with your lender.

What is a Personal Loan foreclosure calculator?

A: It’s an online tool that calculates charges, savings and outstanding balances when foreclosing on a Personal Loan.

Can I avoid foreclosure penalties using a calculator?

The calculator helps you estimate penalties, but avoiding them depends on lender policies.

Can I calculate Personal Loan foreclosure charges online?

Yes, the calculator provides accurate charge estimates according to the information you put in the fields.

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