Original sanctioned loan amount
Annual interest rate
Original tenure
Number of EMIs paid so far
Bank's foreclosure penalty (0% for floating rate)
Monthly EMI
₹0
Outstanding Principal
₹0
Foreclosure Amount
₹0
Interest Remaining (if continued)
₹0
💰 Net Interest Saved
₹0
What is Loan Foreclosure?
Loan foreclosure means paying off the entire outstanding principal of a loan before the scheduled end of the loan tenure. This results in saving all the future interest that would otherwise have been paid.
RBI Rules on Foreclosure Charges
- Floating rate loans — RBI mandates zero foreclosure charges for individuals (effective since 2012)
- Fixed rate loans — Banks may charge 1–5% of outstanding principal as foreclosure penalty
- Business loans — Foreclosure charges may apply regardless of rate type
When Should You Foreclose?
Foreclosure is financially beneficial when: the interest saved is greater than the foreclosure penalty. Our calculator shows you the net saving after all charges.