Pay Today to Close
₹0
Outstanding ₹0Interest You Avoid
₹0
net of the charge, over the 0 months still to runThat Is A Return Of
0%
guaranteed, tax-free, per yearShould You Actually Do It?
Where Your Loan Stands
Close Now, or Run It Out
Keep Paying
Close Today
Difference
Why a percentage, and not just "you save ₹X". The two figures are not comparable: the interest you avoid is spread over the years still to run, while the cheque leaves your account today. The honest question is what that cheque earns. Paying ₹0 now buys you out of 0 monthly payments of ₹0 — and the rate that makes those two equal is 0% a year, guaranteed and untaxed. So the decision is simply: can your money reliably earn more than that somewhere else, after tax? If yes, keep the loan. If no, close it. With no foreclosure charge this figure comes out at exactly your loan rate; a charge pulls it below, which is the part a bare "interest saved" headline hides.
Whether you can be charged at all. The RBI's Pre-payment Charges on Loans Directions, 2025 were issued on 2 July 2025 and take effect for loans sanctioned or renewed on or after 1 January 2026 — they are not retrospective, so an older loan is governed by the terms you signed. Where they apply, banks may levy no pre-payment charge on floating-rate loans to individuals for non-business purposes, whatever the source of funds and with no lock-in. Fixed-rate loans are not covered — and since most personal loans are fixed-rate, the charge is very often real. Check the sanction letter rather than the marketing page.
This is arithmetic on the numbers you entered, not a quote. Your lender computes the payoff to a specific date and may add accrued interest to that date, unpaid charges or GST on the fee, so ask for a written foreclosure statement before you transfer anything. Two things this calculator deliberately does not price: an emergency fund you spend down to close the loan is worth more than the interest it saves, and losing a home-loan interest deduction can change the after-tax comparison — both are yours to weigh, not ours to assume.