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.

Personal Loan Foreclosure Calculator

Calculate your foreclosure amount with our calculator

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

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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. EMI Information

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

3. 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.

Fees & Charges for Personal Loan Foreclosure

Loan Processing Fees (non-refundable):	Upto 3%* of Loan Amount + applicable taxes
EMI Dishonour/ Bounce Charges:	As shown in the table below
Sanctioned Loan Amount	Charges
< ₹ 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
Duplicate NOC Charges:	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
Loan Cancellation Charge:	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