While planning and calculating your education loan financials, one major question is:
“What if I want to repay early?”
At Propelld, we believe repayment should be as flexible as borrowing. Whether you want to clear your loan faster, reduce your EMI burden, or make small extra payments when possible, Propelld offers prepayment and foreclosure options that are simple, transparent, and student-friendly.
This page explains:
1. What foreclosure and prepayment mean
2. Propelld’s foreclosure charges
3. How prepaying early can save you money
4. Common FAQs about foreclosure and prepayment
What is Foreclosure & Prepayment?
1. Foreclosure = Repaying your entire outstanding loan amount before the scheduled tenure ends.
2. Prepayment = Paying off part of your loan (lump sum or small amounts) before the scheduled EMIs.
Both help reduce your interest burden and loan tenure.
Propelld’s Foreclosure & Prepayment Policy
1. Charges
- Standard foreclosure charges: 2–4% of the outstanding principal (as per loan agreement).
- These charges are clearly mentioned in your loan sanction letter and agreement.
2. Waiver Policy
Propelld waives off foreclosure charges, depending on your repayment profile and scenarios like:
- Medical emergencies
- Financial hardships
- Strong repayment track record
Propelld does not penalize the students for finishing their loan burden faster.
3. Prepayment Flexibility
- You can make prepayments anytime during your tenure.
- These prepayments directly reduce your outstanding principal, which lowers future interest.
- Even occasional prepayments can save you months off your repayment schedule.
- The prepayment amount must be equivalent to at least two EMIs.
Why Prepaying Early Helps?
Let’s say you borrowed ₹10 lakhs for an MBA with a 10-year tenure.
If you make one or two partial prepayments every year, say ₹50,000 from bonuses, savings, or gifts, you could:
1. Reduce your total interest outgo by lakhs
2. Close your loan up to 2 years earlier
3. Gain financial freedom sooner, without any foreclosure penalty
Propelld makes it easy, you can prepay anytime, in flexible amounts!
Key Takeaways
1. Foreclosure = full early closure; Prepayment = partial early payment.
2. Charges: 2–4% (as per agreement).
3. Prepayments, even small, directly reduce interest burden.
4. Available across all loan types: domestic, abroad, coaching, and upskilling.
5. Propelld gives flexibility + transparency in repayment.
Are you parent of a JEE/NEET aspirant?
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