Part-prepayment and foreclosure
- Part-prepaymentYou pay an extra amount on top of your usual instalment. It goes towards the principal, so you owe less from then on.
- ForeclosureYou repay everything still owed in one go and close the loan before its last due date.
Why it saves you money
On a reducing-balance loan, each period's interest is charged on the principal you still owe. Pay some of that principal early and every later period's interest is charged on a smaller amount.
After a part-prepayment, a lender either keeps the EMI the same and shortens the tenure, or keeps the tenure and lowers the EMI. Your updated schedule shows which.
What to check before you prepay
- Any prepayment or foreclosure charge. It is listed in your Key Fact Statement and loan agreement.
- What you owe today. A foreclosure amount is the outstanding principal plus interest up to the day you pay, and any dues not yet paid.
- Your upcoming instalments. If an auto-debit is due in a day or two, check whether it will still be collected.
- Confirmation. Keep the receipt, and after a foreclosure, the confirmation that the loan is closed.
Prepaying with TrustLender
You can prepay part or all of your loan at any time without a prepayment penalty.
- Log in with your mobile number on this site or in the TrustLender app.
- Open your loan to see your schedule, next EMI and payment history.
- Pay from your account. For a Salary Loan you can repay any time before the due date.
- Not sure what to pay? Request a call back or message support on WhatsApp.
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