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Loan Foreclosure Calculator

Calculate net savings from closing your loan early. Includes foreclosure charges.

🔒Foreclosure Details

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Home Loan: 0% (Floating) • Personal: 2-5% • Car: 3-6%

💰Foreclosure Analysis

Net Savings
₹6,29,000
Current EMI₹22,343
Outstanding Principal₹15,00,000
If Continued (Total)₹21,44,928
Foreclosure Amount₹15,30,000
Foreclosure Charges₹30,000
Interest Saved₹6,44,928

Frequently Asked Questions

When to foreclose loan? +
When you have surplus money and: (1) Your loan rate > investment returns, (2) Foreclosure charges < interest savings, (3) You don't need the cash for emergencies, (4) Loan tenure has 3+ years remaining. Generally, in early years foreclosure saves the most.
Foreclosure charges in India? +
RBI Rule: Home Loan Floating - NIL charges. Home Loan Fixed - up to 2-3%. Personal Loan: 2-5% (some banks 0% after 12 EMIs). Car Loan: 3-6% in early years, NIL after 24 EMIs. Education Loan: NIL (govt rule). Always read your sanction letter.
Foreclose vs Invest? +
Compare net rates. Home Loan @8.5% (post-tax ~6%): If you can earn >9% from MF/equity, INVEST. Personal Loan @14%: ALWAYS foreclose (very few investments beat 14% post-tax). Car Loan @9%: Borderline — depends on MF returns. Conservative approach: Foreclose first, then invest fresh money.
Foreclosure procedure? +
Step 1: Visit/call bank, request foreclosure quote (gives exact closure amount). Step 2: Arrange funds. Step 3: Make full payment via cheque/online transfer. Step 4: Get NOC (No Objection Certificate). Step 5: Property docs returned (for home/car loan), CIBIL updated in 30 days.
Tax impact of foreclosure? +
Home loan: You lose future Section 24b interest deduction (₹2L/year) and 80C principal deduction (₹1.5L/year). For 30% tax bracket, that's ₹1.05L/year tax loss. But interest saved is usually 3-5x more than tax loss. So foreclosure usually wins financially.
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Important Financial Disclaimer

This calculator is for informational purposes only. Results are estimates and should NOT be considered as financial advice.

  • 💼 Consult your bank or financial advisor before any loan decision.
  • 📊 Bank rates shown are indicative. Your actual rate depends on credit score, income, employment.
  • 📋 Calculations may not include processing fees, GST, prepayment charges, late fees, insurance.
  • ⚖️ Loan eligibility criteria vary across banks. Check official website for current terms.
  • 🔄 Interest rates change frequently based on RBI repo rate. Verify before applying.

By using this calculator, you agree that KaamKaTool.in is not liable for any financial decisions or losses based on this information.

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