{"id":6693,"date":"2023-08-28T18:26:23","date_gmt":"2023-08-28T18:26:23","guid":{"rendered":"\/blog\/?p=6693"},"modified":"2025-01-29T14:50:10","modified_gmt":"2025-01-29T09:20:10","slug":"things-you-need-to-know-about-personal-loan-prepayment-option","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/personal-use-loan\/things-you-need-to-know-about-personal-loan-prepayment-option\/","title":{"rendered":"Things you Need to Know About Personal Loan Prepayment Option"},"content":{"rendered":"\n

Personal loans are a convenient\nway to fund short- and mid-term goals. Personal loans aren\u2019t just for those who\nmay not be able to afford to buy something; even people who may not want to\nspend a considerable amount immediately, despite having money available, choose\nto apply for such loans.<\/p>\n\n\n\n

Like all loans, personal loans\nalso come with financial implications. At the same time, such loans also carry\nmultiple benefits, especially if you plan to prepay them. Most financial\ninstitutions have a minimum lock-in period, which is usually set at one year\n(but can be more, depending on the provider). However, once the lock-in period\nis over, you can choose to prepay the loan. This way, you can complete the\nmonthly EMIs earlier than expected and enjoy additional advantages. If you\u2019re\nlooking to prepay your personal loan, here are some things you need to keep in\nmind:<\/p>\n\n\n\n

Lesser interest<\/strong><\/p>\n\n\n\n

When you apply for a personal\nloan, the longer repayment tenure sounds like a wise choice since it reduces\nthe monthly EMI. However, in the longer run, this quickly adds up to a pretty\nsubstantial interest amount. If you prepay or part-pay ahead of the end date,\nyou can save a decent amount of money you might otherwise pay as interest.<\/p>\n\n\n\n

Prepayment charges<\/strong><\/p>\n\n\n\n

A caveat to saving up on interest by prepayment of personal loans is that you have to bear the prepayment charges. Usually, these vary from one financial institution to another and are generally fixed at around 3 – 5%, depending on your provider. However, when pitted against the added interest during the tenure of the loan, the prepayment charges are still nominal. You can also calculate your loan prepayment amount with the help of a personal loan prepayment calculator<\/a> online.<\/p>\n\n\n\n

Opportunity to go debt-free faster<\/strong><\/p>\n\n\n\n

One of the most important reasons\nfor prepaying your personal loan is that you can avoid the debt burden that\nexists. A lot of people might have multiple loans to repay. Right from a car\nloan to home or personal loans, there could be several to take care of. Hence,\nrepaying one such loan reduces the debt burden significantly and allows you to\nchannel more outflow towards the other loans, thereby reaching a debt-free\nstage earlier than expected.<\/p>\n\n\n\n

Improve credit score<\/strong><\/p>\n\n\n\n

Your credit score<\/a> becomes very important when it comes to your financial standing. It\u2019s often taken diligently into consideration by loan providers when you\u2019re applying for loans, and for other financial decisions. A big benefit of prepaying personal loans<\/a> is that it gives you the chance to go debt-free, which in turn improves your credit score. If you\u2019re unable to settle the entire personal loan amount at one go, even partial pre-payment affects your credit score positively.<\/p>\n\n\n\n

If you\u2019re planning to take a personal loan<\/a>, you can opt for a longer tenure to reduce the immediate interest burden during the lock-in period. However, do keep in mind that you should plan to prepay the loan amount to enjoy the benefits mentioned above. Consider taking a personal loan from Tata Capital to avail of attractive personal loan interest rates<\/a> and easy prepayment options.<\/p>\n\n\n\n

Apply Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Personal loans are a convenient way to fund short- and mid-term goals. Personal loans aren\u2019t just for those who may not be able to afford to buy something. <\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":6694,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-6693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-use-loan"],"yoast_head":"\nThings you Need to Know About Personal Loan Prepayment Option - TATA Capital Blog<\/title>\n<meta name=\"description\" content=\"Know the benefits and charges of prepaying a personal loan, including saving on interest, reducing debt, and improving your credit score.\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Things you Need to Know About Personal Loan Prepayment Option - TATA Capital Blog\" \/>\n<meta property=\"og:description\" content=\"Know the benefits and charges of prepaying a personal loan, including saving on interest, reducing debt, and improving your credit score.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/things-you-need-to-know-about-personal-loan-prepayment-option\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-28T18:26:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-29T09:20:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2020\/01\/know-about-personal-loan-prepayment-option.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tata Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tata Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/things-you-need-to-know-about-personal-loan-prepayment-option\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/things-you-need-to-know-about-personal-loan-prepayment-option\/\",\"name\":\"Things you Need to Know About Personal Loan Prepayment Option - TATA Capital Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\"},\"datePublished\":\"2023-08-28T18:26:23+00:00\",\"dateModified\":\"2025-01-29T09:20:10+00:00\",\"author\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a\"},\"description\":\"Know the benefits and charges of prepaying a personal loan, including saving on interest, reducing debt, and improving your credit score.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/things-you-need-to-know-about-personal-loan-prepayment-option\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/things-you-need-to-know-about-personal-loan-prepayment-option\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/things-you-need-to-know-about-personal-loan-prepayment-option\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.tatacapital.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Things you Need to Know About Personal Loan Prepayment Option\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/\",\"name\":\"TATA Capital Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.tatacapital.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a\",\"name\":\"Tata Capital\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g\",\"caption\":\"Tata Capital\"},\"sameAs\":[\"https:\/\/tata-blog.osian.dev\/blog\"],\"url\":\"https:\/\/tata-blog.osian.dev\/blog\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Things you Need to Know About Personal Loan Prepayment Option - TATA Capital Blog","description":"Know the benefits and charges of prepaying a personal loan, including saving on interest, reducing debt, and improving your credit score.","robots":{"index":"noindex","follow":"nofollow"},"og_locale":"en_US","og_type":"article","og_title":"Things you Need to Know About Personal Loan Prepayment Option - TATA Capital Blog","og_description":"Know the benefits and charges of prepaying a personal loan, including saving on interest, reducing debt, and improving your credit score.","og_url":"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/things-you-need-to-know-about-personal-loan-prepayment-option\/","og_site_name":"TATA Capital Blog","article_published_time":"2023-08-28T18:26:23+00:00","article_modified_time":"2025-01-29T09:20:10+00:00","og_image":[{"width":770,"height":400,"url":"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2020\/01\/know-about-personal-loan-prepayment-option.jpg","type":"image\/jpeg"}],"author":"Tata Capital","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Tata Capital","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/things-you-need-to-know-about-personal-loan-prepayment-option\/","url":"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/things-you-need-to-know-about-personal-loan-prepayment-option\/","name":"Things you Need to Know About Personal Loan Prepayment Option - TATA Capital Blog","isPartOf":{"@id":"https:\/\/www.tatacapital.com\/blog\/#website"},"datePublished":"2023-08-28T18:26:23+00:00","dateModified":"2025-01-29T09:20:10+00:00","author":{"@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a"},"description":"Know the benefits and charges of prepaying a personal loan, including saving on interest, reducing debt, and improving your credit score.","breadcrumb":{"@id":"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/things-you-need-to-know-about-personal-loan-prepayment-option\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/things-you-need-to-know-about-personal-loan-prepayment-option\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/things-you-need-to-know-about-personal-loan-prepayment-option\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.tatacapital.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Things you Need to Know About Personal Loan Prepayment Option"}]},{"@type":"WebSite","@id":"https:\/\/www.tatacapital.com\/blog\/#website","url":"https:\/\/www.tatacapital.com\/blog\/","name":"TATA Capital Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.tatacapital.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a","name":"Tata Capital","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g","caption":"Tata Capital"},"sameAs":["https:\/\/tata-blog.osian.dev\/blog"],"url":"https:\/\/tata-blog.osian.dev\/blog\/author\/admin\/"}]}},"featured_image_url":"https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2020\/01\/know-about-personal-loan-prepayment-option.jpg","_links":{"self":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts\/6693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/comments?post=6693"}],"version-history":[{"count":4,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts\/6693\/revisions"}],"predecessor-version":[{"id":45899,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts\/6693\/revisions\/45899"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/media\/6694"}],"wp:attachment":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/media?parent=6693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/categories?post=6693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/tags?post=6693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}