Personal Loan Foreclosure Charges by Bank (2026)
Charges and part-payment options vary by lender, product, loan amount, disbursement or sanction date, paid EMIs, and sometimes source of funds. This page summarizes linked lender documents. Each lender's source check date appears in the comparison; your sanction letter and a dated quote control your account.
Foreclosure charges compared
| Lender | Foreclosure charge | Part-prepayment |
|---|---|---|
| HDFC BankPrivateSource checked 2026-10-06 | 2–4% of principal outstanding + GST (EMI-seasoning based) | Allowed after the first EMI; once per financial year and twice over the loan tenure, up to 25% of principal outstanding. Same seasoning-based charge slab applies. |
| SBIPSUSource checked 2026-10-06 | 3% pre-closure charge for listed SBI personal-loan schemes | The linked public MITC does not specify a general part-payment charge or facility. Confirm whether part-payment is allowed and what charge applies to your scheme. |
| ICICI BankPrivateSource checked 2026-10-06 | 3% + GST within 24 months; 0% after 24 months | The current schedule lists part-payment any number of times: 3% plus applicable taxes on the amount prepaid within 24 months of disbursal, and nil after 24 months, for eligible loans disbursed on or after 1 January 2026. |
| Axis BankPrivateSource checked 2026-10-06 | Conditional: 0–3% based on disbursed amount, paid EMIs, and source of funds; GST extra | After 12 paid EMIs, up to 25% of principal outstanding may be prepaid in a year without a charge; the schedule requires a 12-paid-EMI gap between such payments. Other part-payments are charged by the applicable paid-EMI slab: 3% up to 36 EMIs and 2% after 36 EMIs. GST extra. |
| Kotak BankPrivateSource checked 2026-10-06 | 4% + taxes up to 3 years; 2% + taxes after 3 years, subject to own-funds terms | For loans disbursed after 1 February 2020, the linked MITC allows one part-payment a year after 12 months, up to 20% of principal outstanding; ₹500 + taxes per request. Loans disbursed on or before that date are listed as ineligible for part-payment. |
| Bajaj FinanceNBFCSource checked 2026-10-06 | Up to 4.72% (incl. taxes) of outstanding on Term Loans; Flexi variants differ | Term Loan part-prepayment: up to 4.72% (including applicable taxes) of the amount prepaid. Flexi variants: part-payments may be made without a charge under the published schedule; confirm the exact variant. |
These are summaries of the linked lender sources, checked on the dates shown for each lender. Charges and terms can change; confirm your sanction letter and get a dated quote.
Bank-wise detail pages
The RBI rule that makes some foreclosures free
RBI prepayment-charge instructions are set out in lender-category-specific Master Directions. For covered floating-rate loans to individuals for non-business purposes, charge eligibility depends on the applicable direction, loan dates, and rate type on the prepayment date. Check the direction for your lender and your loan documents. The standalone 2025 notification has been withdrawn; read the applicable lender-category direction in the official RBI Master Directions index.
Check sanction or renewal date, whether the loan is floating on the payment date, borrower type and loan purpose, and the lender category. The current Directions also apply regardless of where the prepayment funds came from and have no minimum lock-in for covered cases. Older loans may be covered by earlier rules; do not rely on the summary alone.
Frequently Asked Questions
Which personal loans have no foreclosure charge?
There is no lender-wide answer that applies to every loan. The published ICICI schedule lists nil charges after 24 months for eligible loans disbursed from 1 January 2026. Axis Bank's schedule is conditional on disbursed amount, paid EMIs, and source of funds. Check the linked current schedule and your own agreement.
Are personal loan foreclosure charges banned by RBI?
For loans sanctioned or renewed on or after 1 January 2026, the RBI Directions prohibit covered lenders from charging prepayment fees on floating-rate loans to individuals for non-business purposes. Dual or special-rate loans are assessed by their rate type on the prepayment date. Other cases may be governed by other rules and contract terms.
Is it worth paying a foreclosure charge to close a personal loan?
Compare the lender's dated foreclosure quote—including applicable fees and taxes—with the interest and other costs avoided under your current repayment schedule. Also consider the cash you use, liquidity, and alternatives. Rate changes and contract terms can change the result.
Do foreclosure charges apply to part-prepayment too?
Yes, a lender may charge for a part-payment, but the fee and eligibility differ from full foreclosure and vary by lender, product, loan date, and agreement. ICICI's published schedule lists part-payments for eligible loans disbursed from 1 January 2026. Review each linked lender page and your sanction terms.
What documents do I get after foreclosing a personal loan?
Collect the loan closure letter and No Objection Certificate (NOC), and verify within 30–45 days that the account shows as closed on your CIBIL report. These protect you if the lender later claims dues.
Related tools & guides
Sources & References
Legal basis: RBI (Pre-payment Charges on Loans) Directions, 2025 (issued 2 July 2025, applicable to loans sanctioned or renewed on or after 1 January 2026); individual bank fee schedules as published.
Official sources
Last verified against official sources: July 2026. Figures are researched from the government sources above and checked before publishing. See our Editorial & Verification Policy.
This page is for informational and educational purposes only. Charges are researched from each lender's published fee schedule and can change at the lender's discretion. This is not financial advice — confirm with your lender before acting.