Category: Business, Services

Before you rush to pay off your loan, there is one practical detail you must check: does your loan have a prepayment penalty? Some loans, particularly older ones or certain types of fixed-rate loans, charge a fee if you repay the principal before the agreed term. This fee can be 1% to 2% of the outstanding amount. On a ₹1 crore loan, that is ₹1 to ₹2 lakh. That is real money, and it changes your calculation.