State Bank of India Personal Loan Foreclosure Charges (2026)
SBI charges 3% of the prepaid amount to foreclose or part-prepay a fixed-rate Xpress Credit personal loan. The charge is waived if you close the loan from a new SBI loan under the same scheme, and published waivers exist for defence personnel. Here is the full schedule and process.
SBI personal loan foreclosure charges at a glance
| Foreclosure charge | 3% on prepaid amount (Xpress Credit, fixed-rate) |
|---|---|
| Part-prepayment | Part-prepayment attracts the same 3% charge on the prepaid amount for fixed-rate loans. |
| Lock-in / when allowed | No published EMI lock-in; foreclosure allowed anytime with charge. |
| Official fee schedule | SBI — Penal Interest & Other Charges · verified 2026-07-04 |
Charge breakdown
- 3% of the amount prepaid, for fixed-rate Xpress Credit loans
The RBI 2026 rule: when foreclosure is free by law[RBI Directions 2025]
RBI (Pre-payment Charges on Loans) Directions, 2025: no pre-payment/foreclosure charges on floating-rate loans to individuals for non-business purposes, for loans sanctioned or renewed on or after 1 January 2026. Fixed-rate personal loans remain outside this protection — bank-specific charges apply.
Check your sanction letter: if your SBI personal loan is floating-rate and was sanctioned or renewed on or after 1 January 2026, the bank cannot charge you anything to prepay or foreclose it. The charges on this page apply to fixed-rate loans — which most personal loans are.
Waivers & exceptions
- No charge if closed from the proceeds of a new SBI loan under the same scheme.
- Waivers published for defence personnel (after 6 months) and certain government/corporate salary-package borrowers.
How to foreclose a SBI personal loan
Visit your branch or use YONO to request the loan closure amount, pay dues, and obtain the closure certificate.
Is foreclosing worth it after the charge?
Compare the remaining interest you would pay by continuing EMIs against the foreclosure charge + GST payable today. Remaining interest = (EMI × months left) − principal outstanding. If the interest saved exceeds the charge, foreclosing saves money.
Worked example
₹3,00,000 outstanding at 14% with 24 EMIs left ≈ ₹46,000 future interest. A 4% + GST foreclosure charge costs ≈ ₹14,160.
Net saving from foreclosing today ≈ ₹46,000 − ₹14,160 = ₹31,840 — foreclosure wins comfortably. The closer you are to the end of tenure, the smaller the interest saving, so re-run the numbers before paying the charge.
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 the lender's published fee schedule and can change at the lender's discretion — always confirm against your sanction letter and the bank's current schedule before acting. This is not financial advice.
Frequently Asked Questions
What is the SBI Xpress Credit foreclosure charge?
SBI charges 3% of the amount prepaid on fixed-rate Xpress Credit personal loans, for both part-prepayment and full foreclosure.
When is SBI personal loan foreclosure free?
No charge applies if the account is closed from the proceeds of a new SBI loan under the same scheme. SBI also publishes waivers for defence personnel after 6 months and certain salary-package borrowers. Floating-rate loans sanctioned on or after 1 January 2026 are charge-free under RBI directions.
Is there a lock-in before I can foreclose an SBI personal loan?
SBI does not publish an EMI lock-in for Xpress Credit — you can foreclose anytime by paying the 3% charge on the prepaid amount.
How do I close an SBI personal loan?
Request the closure amount at your branch or through YONO, pay the dues including the foreclosure charge, and collect the loan closure certificate.