[{"data":1,"prerenderedAt":209},["ShallowReactive",2],{"site-nav":3,"guide:home-loan-prepayment-charges":93},{"sections":4,"hubs":65,"guides":81},[5,32,43,58],{"heading":6,"items":7},"Loans & debt · India",[8,12,16,20,24,28],{"path":9,"name":10,"blurb":11},"\u002Fin\u002Fhome-loan-prepayment-calculator","Prepayment calculator","Model lump sums, monthly top-ups and yearly bonuses together, and see what each one removes from your interest bill.",{"path":13,"name":14,"blurb":15},"\u002Fin\u002Fhome-loan-emi-calculator","EMI calculator","Work out the monthly instalment from your balance, rate and remaining tenure — with the full schedule behind it.",{"path":17,"name":18,"blurb":19},"\u002Fin\u002Fhome-loan-amortization-schedule","Amortization schedule","The complete payment-by-payment breakdown — opening balance, interest, principal and closing balance, year by year.",{"path":21,"name":22,"blurb":23},"\u002Fin\u002Fhome-loan-part-payment-calculator","Part payment calculator","One lump sum, one date. See the interest it removes and the months it cuts before you commit the money.",{"path":25,"name":26,"blurb":27},"\u002Fin\u002Freduce-emi-or-tenure-calculator","Reduce EMI or tenure","The one decision that changes your outcome most. Both options costed simultaneously on your own loan.",{"path":29,"name":30,"blurb":31},"\u002Fin\u002Fhome-loan-foreclosure-calculator","Foreclosure calculator","Closing the whole loan early. Weighs the interest saved against every charge, and reports a signed net benefit.",{"heading":33,"items":34},"Loans & debt · United Kingdom",[35,39],{"path":36,"name":37,"blurb":38},"\u002Fuk\u002Fmortgage-overpayment-calculator","Mortgage overpayment","For UK mortgages. Model lump sums and monthly overpayments against your 10% annual allowance and any early repayment charge.",{"path":40,"name":41,"blurb":42},"\u002Fuk\u002Fmortgage-payoff-calculator","Mortgage payoff planner","For UK mortgages. Work backwards from what you can afford each month, or from the year you want to be mortgage-free.",{"heading":44,"items":45},"Savings & investing",[46,50,54],{"path":47,"name":48,"blurb":49},"\u002Fcompound-interest-calculator","Compound interest calculator","Grow a lump sum and regular deposits at any rate and compounding frequency, year by year, in the currency you choose.",{"path":51,"name":52,"blurb":53},"\u002Fcagr-calculator","CAGR calculator","Turn a starting value, an ending value and a holding period into one smoothed annual growth rate.",{"path":55,"name":56,"blurb":57},"\u002Finflation-calculator","Inflation calculator","See what today's prices will cost in future, and what today's money will buy, at any inflation rate.",{"heading":59,"items":60},"Savings & investing · India",[61],{"path":62,"name":63,"blurb":64},"\u002Fin\u002Fsip-calculator","SIP calculator","Project a monthly mutual fund SIP, with an optional yearly step-up, using AMFI's start-of-month convention.",[66,72,76],{"path":67,"name":68,"label":69,"description":70,"updated":71},"\u002Floans","Loans & debt","All loan calculators","Free loan and mortgage calculators that show the full repayment schedule behind every figure: EMI, prepayment, part payment, foreclosure and payoff, for Indian home loans and UK mortgages.","2026-09-10",{"path":73,"name":44,"label":74,"description":75,"updated":71},"\u002Finvesting","All savings and investing calculators","Free savings and investment calculators that show their working: compound interest with regular deposits, CAGR, and inflation and purchasing power in any currency, plus a SIP calculator for Indian mutual funds.",{"path":77,"name":78,"label":79,"description":80,"updated":71},"\u002Fin","India","All India calculators","Free calculators for India, in rupees: home loan EMI, prepayment, part payment, foreclosure and whether to cut your EMI or your tenure, plus a mutual fund SIP calculator — each showing the working behind its figures.",[82,88],{"slug":83,"title":84,"blurb":85,"updated":86,"minutes":87},"reduce-emi-or-tenure","Reduce EMI or reduce tenure? How to decide","The single choice that decides most of what a prepayment is worth.","2026-09-03",6,{"slug":89,"title":90,"blurb":91,"updated":71,"minutes":92},"home-loan-prepayment-charges","Home loan prepayment and foreclosure charges: what you can be charged","What lenders may and may not charge you for paying early, and what changed on 1 January 2026.",5,{"guide":94,"minutes":92,"toc":199,"tools":204,"related":207},{"slug":89,"title":90,"seoTitle":95,"blurb":91,"description":96,"published":86,"updated":71,"author":97,"reviewer":98,"sources":99,"tools":108,"related":111,"body":112},"Home Loan Prepayment & Foreclosure Charges — the RBI rules","RBI bars prepayment and foreclosure charges on floating-rate home loans to individuals, and the 2025 Directions widened that from 1 January 2026. What applies to your loan, what still costs money, and how to check.","The CutYears team","Pending — see the note at the end of this guide",[100,103,105],{"label":101,"url":102,"verified":71},"Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025 (RBI\u002F2025-26\u002F64) — issued 2 July 2025, applicable to floating-rate loans sanctioned or renewed on or after 1 January 2026; para 6 on fixed-rate loans; the Annex repeals the 2012, 2014 and 2019 circulars","https:\u002F\u002Fwww.rbi.org.in\u002Fscripts\u002FNotificationUser.aspx?Id=12878&Mode=0",{"label":104,"verified":71},"RBI Responsible Business Conduct Directions, 28 November 2025 — carry forward the bar on pre-payment charges for floating-rate term loans to individuals, for non-business purposes, sanctioned on or before 31 December 2025 (NBFC Directions para 33, read in a published reproduction; the RBI copy was not directly accessible)",{"label":106,"url":107,"verified":71},"CBIC Circular 178\u002F10\u002F2022-GST — pre-payment charges are consideration for the loan and take its GST treatment","https:\u002F\u002Fcbic-gst.gov.in\u002Fpdf\u002Fcircular-178-10-2022-gst.pdf",[109,110],"in\u002Fhome-loan-foreclosure-calculator","in\u002Fhome-loan-part-payment-calculator",[83],[113,116,120,122,124,132,137,140,142,170,174,177,184,187,189,195],{"type":114,"text":115},"p","For most people reading this, the answer is: nothing. If you have a floating-rate home loan in your own name from a bank or an NBFC, your lender is not permitted to charge you for prepaying part of it or for closing it entirely. That has been the position for floating-rate home loans to individual borrowers for over a decade, and it was widened in 2025. The rest of this guide is about the cases where it is not that simple, and about how to confirm which case you are in.",{"type":117,"id":118,"text":119},"h2","what-changed","What changed on 1 January 2026",{"type":114,"text":121},"The Reserve Bank of India issued the Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025 on 2 July 2025. They apply to loans sanctioned or renewed on or after 1 January 2026, and they are prospective. They also repealed the older circulars that first barred these charges, but an older loan did not lose its protection: RBI carried the same bar into its November 2025 Responsible Business Conduct Directions for floating-rate term loans to individuals, for purposes other than business, sanctioned on or before 31 December 2025.",{"type":114,"text":123},"The Directions were issued because practice across lenders had become inconsistent, and because prepayment charges were operating as a deterrent to refinancing — a borrower who cannot leave without paying to leave is not really shopping for a better rate. Broadly, for floating-rate loans they establish that:",{"type":125,"items":126},"list",[127,128,129,130,131],"For loans to individuals for purposes other than business, no pre-payment charges may be levied, with or without co-obligants.","It does not matter where the money came from. There is no distinction between prepaying from your own funds and prepaying by refinancing elsewhere.","It applies to partial prepayment as well as full closure.","There is no minimum lock-in period. A lender cannot require you to hold the loan for a year before prepaying without charge.","For business-purpose loans to individuals and to micro and small enterprises, the same bar applies, though for certain smaller lender categories it is limited to loans up to a sanctioned limit of ₹50 lakh.",{"type":133,"tone":134,"title":135,"text":136},"callout","info","Fixed-rate loans are treated differently","The prohibition is built around floating-rate lending. If your home loan is on a fixed rate, or is in a fixed-rate period of a hybrid product, a prepayment or foreclosure charge may legitimately apply — and the 2025 Directions require it to be calculated on the amount you prepay, not on the loan. A dual-rate loan is judged by the rate it is on when you prepay: the rate your loan actually sits on, not the product name, is what decides this. Check your sanction letter.",{"type":117,"id":138,"text":139},"what-still-costs","What can still cost you money",{"type":114,"text":141},"The prepayment charge is the headline item, but it is rarely the only line on a closure. Charges that are not prepayment charges are not covered by the bar, and some of them are legitimate:",{"type":143,"head":144,"rows":148,"caption":169},"table",[145,146,147],"Item","What it is","Typically",[149,153,157,161,165],[150,151,152],"Prepayment \u002F foreclosure charge","A fee for paying early. Barred on floating-rate loans to individuals.","Nil",[154,155,156],"Fixed-rate prepayment charge","Where your loan sits on a fixed rate and the bar does not apply.","A percentage of the amount prepaid — check your sanction letter",[158,159,160],"Administrative or closure fee","Processing the closure and issuing documents.","A modest flat amount, if charged at all",[162,163,164],"Charge release \u002F MODT reversal","Removing the lender's registered charge on the property. A statutory cost, not a lender fee.","Varies by state",[166,167,168],"Accrued interest to the payoff date","Not a charge at all — it is interest you genuinely owe up to the day the account closes.","Shown on the foreclosure statement","Amounts vary by lender, product and state. Ask for a written foreclosure statement that itemises every line before you transfer anything.",{"type":171,"slug":109,"label":172,"note":173},"tool","Put your own charges into the calculation","Enter any prepayment percentage and any flat closure fee under Advanced options. The net benefit is signed — if the charges exceed the interest saved, it will say so rather than showing you a zero.",{"type":117,"id":175,"text":176},"how-to-check","How to check what applies to your loan",{"type":125,"ordered":178,"items":179},true,[180,181,182,183],"Find your sanction letter and confirm two things: whether the rate is floating or fixed, and the sanction date. Those two facts determine which rules govern you.","Find your lender's current schedule of charges. Every bank and NBFC publishes one, usually under \"Fair Practices Code\" or \"Service Charges\" on their website, and they are required to keep it current.","Ask for a written foreclosure or part-payment statement before paying. It should itemise the payoff amount, every charge, and the date to which it is valid.","If a charge appears that you believe should not, raise it with the lender's grievance officer in writing. If that does not resolve it, the RBI Integrated Ombudsman Scheme exists for exactly this and costs nothing to use.",{"type":117,"id":185,"text":186},"paperwork","The paperwork to collect when you close",{"type":114,"text":188},"This is the part that causes real problems years later, and none of it is optional. On the day you close the loan, collect:",{"type":125,"items":190},[191,192,193,194],"The No Objection Certificate and the loan closure letter.","Every original property document the lender has been holding. Check the list against what you gave them at disbursement, page by page, before you leave.","Written confirmation that the lender has released its charge on the property — including the MODT reversal or equivalent with the sub-registrar, where one was registered.","Confirmation that the account has been reported as closed to the credit bureaus. Check your own credit report a month later; a closed loan still showing as active is common and is much easier to fix while the closure is recent.",{"type":133,"tone":196,"title":197,"text":198},"warn","Verify before you rely on this","This guide describes the regulatory position as we verified it on 3 September 2026, and it is a summary rather than the regulation. Rules change, lender practice varies, and your own loan agreement is the document that governs your loan. Read the primary sources listed below, check your sanction letter, and speak to your lender before acting on any figure.",[200,201,202,203],{"id":118,"text":119},{"id":138,"text":139},{"id":175,"text":176},{"id":185,"text":186},[205,206],{"path":29,"name":30,"blurb":31},{"path":21,"name":22,"blurb":23},[208],{"slug":83,"title":84,"blurb":85,"updated":86,"minutes":87},1789052309816]