Repaying the whole of a loan before its tenure ends.
Lenders may charge a foreclosure fee of 2% to 5% of what is outstanding on fixed-rate loans. RBI rules do not allow foreclosure or prepayment charges on floating-rate loans taken by individuals for purposes other than business.
Many lenders allow foreclosure only after a lock-in, often 6 to 12 EMIs. Ask for a foreclosure letter and a no-dues certificate when you close.
Short reads that explain how it works before you decide.
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