Yes, you can close your personal loan early, either through part-prepayment or full foreclosure. Most banks and NBFCs allow early closure after a minimum lock-in period, usually 6 to 12 EMIs. However, lenders may charge a foreclosure or prepayment penalty, typically ranging from 2% to 5% of the outstanding principal plus GST. Some digital lenders and RBI-regulated institutions waive penalties on floating-rate loans.
Early closure reduces total interest outgo and improves your credit profile, but always check your loan agreement for exact charges, lock-in rules, and procedure before proceeding.
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Can I close my personal loan early? Are there any penalties?
rahrkkui246
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2026-01-05T10:54:23+00:00 2026-01-05T10:55:57+00:00Comment
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