Foreclosure Calculator
Calculate loan prepayment amount and see how much you can save by closing your loan early.
Loan Foreclosure & Prepayment Calculator
Find out your foreclosure amount, charges, and potential interest savings
Understanding Loan Foreclosure
What is Loan Foreclosure?
Loan foreclosure (also called prepayment or early closure) means paying off your entire outstanding loan balance before the scheduled end date.
This can help you become debt-free sooner and save significantly on interest payments, especially for long-term loans like mortgages.
Foreclosure Charges
- Floating rate loans: Often 0-2% or nil charges
- Fixed rate loans: Usually 2-5% of outstanding
- Processing fee: Fixed fee for paperwork
- Lock-in period: Some loans restrict early foreclosure
- Charges vary by lender and loan type
When to Foreclose
- You have surplus funds from bonus/inheritance
- Interest saved exceeds foreclosure charges
- You want to be debt-free before major life events
- Interest rate is higher than investment returns
- You're in early stages of loan (more interest savings)
Alternatives to Full Foreclosure
- Part prepayment: Pay extra to reduce principal
- EMI increase: Pay higher EMI to finish faster
- Balance transfer: Move to lower interest rate
- Tenure reduction: Keep EMI same, reduce term
- Compare net benefit of each option