Full prepayment of a loan involves paying off the entire remaining loan balance before the scheduled maturity date. This allows you to foreclose the loan and become debt-free earlier, potentially saving on future interest charges.
Part prepayment, o the other hand, refers to making additional payments towards the principal amount of your loan, before the scheduled maturity date. This reduces the overall principal balance that you have to repay. It lets you decrease your debt, potentially save on interest costs, and shorten the loan term.
Charges applicable on full or part prepayment of your business loan
Depending on the business loan variant you choose, you may or may not have to pay a penalty upon part-paying your loan.
We offer three types of business loan: Term Loan, Flexi Term Loan, and Flexi Hybrid Loan. For all three, the prepayment charges are as follows:
Loan type |
Full prepayment/foreclosure charges |
Part prepayment charges |
Term Loan |
Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment. |
Up to 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part prepayment. |
Flexi Term Loan |
Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment. |
No charges applicable. |
Flexi Hybrid Loan |
Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment. |
No charges applicable. |
How to prepay my business loan online
You can prepay your business in full or part, through our customer portal – My Account. Here is how:
Step 1: If you are on a web browser, sign in to My Account with your mobile number and the OTP sent to you. Enter your date of birth to proceed.
If you are on the app, simply log in and navigate to the account section.
Step 2: Choose the loan account that you wish to make a prepayment on, and enter the necessary details.
Step 3: Select your preferred payment option.
Step 4: Review the applicable charges and proceed with the payment.
