Yes, there are applicable personal loan prepayment charges. Pre-closure (also called foreclosure) and prepayment of personal loans may attract charges, depending on the lender's policy and the terms of the loan agreement. Charges can range from 0% to 5% of the prepaid amount. Some lenders waive these charges if prepayment is done after a specific period (e.g., 12 months).
What are the Personal Loan Preclosure Charges?
For full pre-closure, charges usually range from 2% to 5% of the outstanding loan amount, plus applicable GST. These charges compensate lenders for the interest income they lose due to early repayment.
Some banks, especially public sector ones, offer zero prepayment or pre-closure fees for loans taken at fixed interest rates.
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What are the ICICI Personal Loan Preclosure Charges?
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Are There Any Pre-Closure Or Prepayment Charges On Personal Loans?
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2025-05-21T12:33:43+00:00 2025-05-21T12:59:45+00:00Comment
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