How To Calculate Your Savings With A Personal Loan Preclosure Calculator?

By Author: Ravi
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Navigating the financial landscape of Loans can be daunting, especially when considering a significant move like foreclosure. In today’s fast-paced environment, the Loan foreclosure calculator offers a reliable and quick way to make informed decisions. Preclosure of a Personal Loan is the full repayment of the remaining amount in one distinct payment instead of repaying the sum of the principal and the interest accrued over the specified tenure of the Loan in equal tranches split monthly over the Loan tenure.
The Personal Loan Preclosure calculator encourages borrowers to repay it before their scheduled EMI period. You can select the EMIs you have already paid and the month you wish to repay the Loan. This will help you arrive at the foreclosure amount.
Understanding foreclosure months
Fees and charges are levied on the preclosure of the Personal Loan based on the foreclosure month. The foreclosure month is from the agreement date you repay the Loan amount in advance. Hence, if your Loan tenure is five years, i.e., 60 months, and you decide to repay it after one ...
... year and two months (14th month), then the 14th month is your foreclosure month.
Using the PL Preclosure calculator
The Personal Loan Prepayment calculator helps you calculate the total amount you need to pay to close the Loan before its expiry. The calculation is similar to the PL EMI or PL eligibility calculators. The factors you need to consider include:

Loan amount: The amount of the Personal Loan you have taken. E.g., Rs. 30 lakh
Tenure: The Loan tenure is in the form of months. E.g., 60 months
Rate of interest: The scheduled interest rate charged on the Personal Loan. E.g., 5%
EMIs paid: The number of EMIs already paid. E.g., 13
Month of foreclosure: The month in which you plan to repay the entire Loan amount, for e.g., 30th month
Prepayment fees: Any prepayment fees levied by the lending institution

 
Requirements for Personal Loan foreclosure
If you would like to foreclose your Personal Loan, you would need a few documents, including the Loan documents, identity and address proof such as Aadhar Card, Voter ID, Passport, etc., statement of Loans displaying the EMIs paid to date, and a Demand Draft or cheque for the outstanding balance.
The Personal Loan Preclosure calculator enables you to calculate the preclosure fees requested by the lender. However, the charges may not apply to floating-rate term Loans sanctioned to borrowers. For example, a foreclosure charge of 7% of the total principal amount will be levied on both salaried and self-employed borrowers who have already paid 0 to 17 EMIs in full. Foreclosure charges will not be levied on both salaried and self-employed borrowers who have already paid 36 EMIs in full.
Conclusion
To foreclose your Loan, you must inform the lender once you have repaid the entire amount. They will check your identity proof and Loan Account number and ask you for a cheque. The account closes automatically, and you will receive an NOC, which acts as a testimony of closure.