This article is general information, not financial advice. Please verify terms with your bank/NBFC before acting.
Checklist to plan a smooth prepayment/foreclosure.
Prepaying reduces outstanding principal and future interest. The earlier you prepay in the tenure, the bigger the savings.
Request a foreclosure statement, weigh charges vs interest saved, and obtain a closure letter for your records.
- Prefer tenure reduction to save more interest (if cash flows allow).
- Avoid depleting emergency savings for prepayment.
- After closure, verify bureau update in the next cycle.