•3 June 2026•5 min read
Understanding Prepayment & Foreclosure Charges on Personal Loans
Prepaying a personal loan is a smart way to get out of debt faster. Personal loans usually carry foreclosure fees ranging from 2% to 5% of the outstanding balance depending on the lending partner.
Always check if your lender enforces a lock-in period (usually 12 months) during which you cannot make prepayments.