Rytvae Consulting · Think Right · Invest Right
Loan Foreclosure Calculator
Result
Chart
Show formula & working
Net saving = Interest still to pay − Foreclosure charge × (1 + GST)
Interest still to pay = remaining EMIs × EMI − outstanding principal.Details
RBI rule on pre-payment / foreclosure charges: rates and rules as of 28-Oct-2026 · Source: RBI (Pre-payment Charges on Loans) Directions, 2025 (2 Jul 2025, effective 1 Jan 2026). Every figure based on it stays editable.
GST on loan processing and similar fees: rates and rules as of 28-Oct-2026 · Source: GST rate schedule for services, heading 9971 (CGST 9% + SGST 9%); CBIC Circular 218/12/2024-GST on processing fees. Every figure based on it stays editable.
How this works
Foreclosing stops all future interest. Against that, a fixed-rate loan can carry a foreclosure charge, with GST on top.
Because interest is front-loaded, closing early saves the most; near the end, the charge can outweigh the interest left.
Frequently asked questions
Do lenders charge for foreclosing a floating-rate loan?
Not on floating-rate loans to individuals for non-business purposes — RBI rules do not allow it. Business loans and fixed-rate loans can differ.
Is part-prepayment cheaper than foreclosing?
Some lenders allow part-prepayment at a lower charge or after a lock-in period. Check your loan terms.
Talk to Rytvae
Compare lenders, structure the loan and plan prepayments with someone who reads sanction letters for a living.