What is the process for prepayment or foreclosure?

Prepayment means paying off part or all of your loan before the scheduled tenure ends. Foreclosure refers specifically to full repayment that closes the entire loan. For prepayment of your personal loan, check your loan agreement for prepayment terms and charges. Calculate the exact amount using your lender’s policy terms on their website/contact customer care. Submit the request through net banking, branch, or app—lenders process it usually within 3-7 working days and adjust your EMI or tenure.

For foreclosure, here’s how the process typically works:

• Get the exact balance: Most lenders show the outstanding amount on their app or send it by SMS/Email if you request it. At this stage, note whether it includes interest till the chosen payment date.
• Visit the branch or pay online: Many people simply walk into the branch with a cheque or use net banking. Some lenders ask you to fill out a form and provide an ID copy.
• Check possible charges: There may be a small fee for prepayment, depending on the lender’s policy and loan terms.
• Collect proof: Once you’ve paid, ask for an acknowledgement from the lender so you have it on record. For full foreclosure, also take a loan closure letter once the final update is reflected.