Loading page
About this tool
Estimate the full foreclosure amount with charges and GST, check the RBI floating-rate exemption, and draft the request.
The Loan Foreclosure Request Generator estimates what pre-closing a loan actually costs — principal outstanding, simple interest accrued since the last instalment on a 365-day year, the foreclosure fee as a percentage of principal and 18% GST on that fee — and compares it against the interest you would still pay if the loan ran to term. It also applies the RBI direction that bars foreclosure and pre-payment charges on floating rate term loans sanctioned to individual borrowers for non-business purposes, and drafts the letter asking the lender for a formal foreclosure statement.
Open Loan Foreclosure Request Generator on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Automatically zeroes the fee for a floating rate loan to an individual for a non-business purpose.
Uses the reducing-balance annuity formula, so remaining interest is the true figure rather than a flat estimate.
Shows how many instalments the closing cost is worth, which is the quickest sanity check on the decision.
Not on a floating rate term loan sanctioned to an individual borrower. The RBI barred pre-payment penalties on floating rate home loans by its circular of 5 June 2012 and extended the bar to all floating rate term loans to individual borrowers by the circular of 2 May 2014. Fixed rate loans and loans to companies or firms remain chargeable, typically at 2% to 5% of the principal outstanding.
Only on the fee, not on the principal or the interest. The foreclosure charge is consideration for a service and attracts GST at the standard 18% rate, so a ₹40,000 fee carries ₹7,200 of GST.
Interest accrues on the principal outstanding for the days elapsed. On a 365-day year, ₹20,00,000 at 8.5% accrues about ₹5,589 over twelve days. The lender's statement will give the exact figure to its own value date, which is the amount you must actually transfer.
A no dues certificate, a closure statement showing a nil balance, all original property and security documents, and removal of any charge registered with a registry — all within 30 days of payment under the RBI circular of 13 September 2023. Also get standing instructions cancelled and the closure reported to the credit bureaus.
Add the Loan Foreclosure Request Generatorwidget to your blog or website — free, responsive, no signup. Just keep the “Widget by AltFTool” credit link visible.
<iframe src="https://www.altftool.com/embed/widget/loan-foreclosure-request-generator"
title="Loan Foreclosure Request Generator — free AltFTool widget"
width="100%" height="640" style="border:0;border-radius:12px;overflow:hidden"
loading="lazy" referrerpolicy="no-referrer-when-downgrade"></iframe>
<p style="font-size:12px;margin:4px 0 0">Widget by <a href="https://www.altftool.com/tools/all/loan-foreclosure-request-generator?utm_source=embed&utm_medium=widget">AltFTool — free online tools</a></p>