Loan Foreclosure Calculator
Calculate the final amount needed to close your loan early and the interest you will save.
₹
%
Mo
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Usually 0% for floating rate home loans, 2-4% for fixed rate/personal loans.
Cost if Continued₹ 0
Foreclosure Amount₹ 0
Total Savings₹ 0
What is a Loan Foreclosure Calculator?
A Loan Foreclosure Calculator helps you determine the total amount required to pay off your loan completely before the tenure ends. It calculates the outstanding principal, adds any applicable foreclosure charges, and shows you the total interest saved by closing the loan early.
How It Works
The calculator takes your loan details and the month in which you want to foreclose. It computes the outstanding principal at that point and adds penalty charges (if any) to give the final closure amount.
Foreclosure Amount = Outstanding Principal + (Outstanding Principal * Penalty%) + GST on Penalty
Example Calculation
Scenario
You have a ₹10L Personal Loan @ 12% for 5 years. You want to close it after 2 years.
- 1.EMIs Paid = 24
- 2.Outstanding Principal ≈ ₹6.6 Lakhs
- 3.Foreclosure Charge = 4% of Principal = ₹26,400 + GST
- 4.Total Amount to Pay ≈ ₹6.9 Lakhs
- 5.Interest Saved on remaining 3 years ≈ ₹1.3 Lakhs
Why This Tool is Useful
- ✓Helps you decide if foreclosure is financially beneficial.
- ✓Estimates the exact funds needed to become debt-free.
- ✓Shows the trade-off between paying penalty vs paying interest.
- ✓Helps in planning the closure of high-interest loans.
- ✓Avoids surprises regarding hidden charges.
Tips & Comparison
- •Check Lock-in Period: Many banks have a lock-in period (e.g., 6-12 months) before which you cannot foreclose the loan.
- •Negotiate Charges: For older loans or good customers, banks might waive off or reduce foreclosure charges.
- •Foreclose High Interest Loans: Prioritize foreclosing personal loans and credit card dues over home loans.
- •Collect NOC: After foreclosure, ensure you collect the No Objection Certificate (NOC) and original documents from the bank.