Loan Foreclosure

Foreclosure means closing your loan early by paying the entire outstanding balance in one go. You save all the interest built into your remaining EMIs, but many lenders charge a foreclosure fee (a percentage of the outstanding amount, plus 18% GST on that fee). This calculator compares the interest you would still pay by continuing your EMIs against the one-time cost of foreclosing, and tells you the break-even charge — the fee percentage above which foreclosing stops making sense. All rates here are reducing-balance (diminishing) rates — interest is charged each month only on what you still owe, which is how banks quote home, car and personal loans. If a dealer or lender quotes a "flat rate", it is NOT the same thing and is usually much more expensive than it looks — use the Flat vs Reducing Rate converter to compare.