What are the prepayment and foreclosure charges for these loans?

Most loan providers allow prepayment or foreclosure of a loan against property but may charge certain penalty. Prepayment means paying off the loan amount before the tenure. Foreclosure is closing the loan account before tenure due to issues in continuing the EMI repayment.

Some financial institutions also have lock-in clauses which restrict foreclosure within a specific period. For example, a loan provider may not permit foreclosure within 12 months from the date of the first EMI. This allows them to recover some costs incurred in originating the loan.

When taking a loan against property, understanding the foreclosure and prepayment policy is important. Compare the charges of different loan providers. While charges are applicable, being aware of them will help make an informed borrowing decision.