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Check whether a prepayment charge appears prohibited under RBI’s 2025 Directions for loans sanctioned or renewed from 1 January 2026.
Enter the facts and calculate. The result appears here.
Check whether a prepayment charge appears prohibited under RBI’s 2025 Directions for loans sanctioned or renewed from 1 January 2026.
This checker separates the legal right-to-charge question from prepayment economics. Finin2min’s EMI/prepayment tools can model interest savings; this page asks whether the lender’s charge itself appears permissible under the relevant RBI Directions.
The Directions apply from the specified effective date to covered loans and advances sanctioned or renewed on or after 1 January 2026. Floating-rate loans to individuals for non-business purposes receive the clearest no-charge treatment.
Business-purpose lending to individuals and MSEs requires a lender-class branch. Certain lender classes have a full prohibition for covered floating-rate loans, while another specified group uses a sanctioned-amount condition up to ₹50 lakh.
Fixed-rate and uncovered combinations are not guessed. The output directs the user back to the Key Facts Statement, sanction terms and lender policy instead of falsely declaring every foreclosure charge illegal.
Every field below changes the result. They are listed exactly as the form asks for them.
| Field | Type | What it controls |
|---|---|---|
| Sanction / renewal date | Date | |
| Rate type | Choice | 3 options: Floating; Fixed; Hybrid / dual |
| If hybrid, rate at prepayment time | Choice | 2 options: Floating; Fixed |
| Borrower / purpose | Choice | 3 options: Individual — non-business purpose; Individual / MSE — business purpose; Other borrower/purpose |
| Lender class | Choice | 9 options: Commercial bank (other than SFB/RRB/LAB); Tier 4 primary UCB; NBFC — Upper Layer; All-India Financial Institution … |
| Sanctioned amount / limit (₹) | Number |
Rule matrix = sanction/renewal date × floating/fixed status × borrower purpose × regulated-entity class × sanction amount where the ₹50 lakh condition applies.
The engine validates required values before calculating and rejects impossible combinations instead of converting them to zero silently. Dates, thresholds and category switches that drive the result remain visible to the user.
The logic on this page is built from the instrument(s) below. Where a rule did not clearly cover a scenario, that scenario is excluded rather than estimated.
The most common error in regulated calculations is not arithmetic; it is putting the facts into the wrong legal or product category. Check the transaction, entity, holding, policy or taxpayer classification before relying on the number.
Keep statements, acknowledgements, invoices, policy schedules, complaint IDs, tax workings or orders that support the inputs. A number without an evidence trail is difficult to defend in a complaint, return, claim or review.
Rules can change. This page records a source-check date, not a fabricated professional review date. If the event belongs to an older period, confirm that the rule version used here applies to that period.
No. It checks the charge-rights framework; use the EMI/prepayment optimizer for savings.
This checker does not automatically apply the 2025 Directions to that older sanction; other rules/contract terms may still matter.
The checker asks whether the loan is floating at the time of prepayment.
No. It is a rules-based screening result using the entered lender/product facts.
Always compare the KFS/loan agreement and current lender disclosures with the regulatory result.
Source links below are the authority trail used to design the current rule logic. They remain more important than a generic secondary explainer.
Source checked: 14 August 2026. This denotes source verification for the package, not CA/legal review or approval of the individual case.
These cover adjacent decisions. Each owns a different question, so use the one that matches your actual event.
This calculator is published for general information and educational purposes only. It is not legal, tax, accounting or investment advice, is not personalised to your circumstances, and is not a substitute for reading the governing instrument or taking professional advice on your facts. Finin2min records a source-check date, which denotes verification of the authority trail and not a professional review or approval of any individual case.
Scope: Computes interest on delayed GST tax payment under Section 50 of the CGST Act.
Review status: reviewed and approved by CA Nikhil Gupta on 19 July 2026.
Background, worked examples and the rules behind these numbers.