Paying off your car loan before the end of your loan tenure? Whether it's a full foreclosure or partial prepayment, doing it right can save you money.
But there are a few things you must know—like charges, process, ideal timing, and how Vizzve Finance helps make it smoother.
Let’s dive in.
Foreclosure vs. Prepayment – What’s the Difference?
| Term | Meaning |
|---|---|
| Prepayment | Paying a portion of your loan early (not full closure) |
| Foreclosure | Paying off the entire remaining loan before the original end date |
Why You Might Want to Close Your Car Loan Early
✅ Save on interest over the loan term
✅ Improve your credit score
✅ Free up EMI commitments
✅ Sell or upgrade your car faster
💡 Vizzve Tip: Timing is everything. Prepay after the lock-in period to avoid penalties.
Foreclosure Charges in 2025 (India)
| Lender Type | Foreclosure Fee (Approx.) |
|---|---|
| Public Sector Banks | 2%–3% of outstanding principal |
| Private Banks | 4%–6% (negotiable in some cases) |
| NBFCs | Up to 6% |
| Vizzve Finance Partners | 0% to 2% (with select lenders) |
🔒 No hidden foreclosure traps when you finance through Vizzve.
When Is the Best Time to Prepay or Foreclose?
Not too early: Most interest is front-loaded in EMIs (first 1–2 years)
After lock-in period: Usually after 6–12 months
When income increases or you receive a bonus/tax refund
Before refinancing or applying for a new loan
💡 Use Vizzve’s Prepayment Calculator to see potential savings.
Does Foreclosing Help Your Credit Score?
Yes, foreclosing responsibly can:
Reduce your debt-to-income ratio
Boost your creditworthiness
Make you eligible for higher-value loans in the future
However, closing too many loans early may reduce your credit age, so weigh it carefully.
How Vizzve Finance Makes Foreclosure & Prepayment Easy
Vizzve’s digital-first platform helps you:
Track your loan repayment schedule in one dashboard
Get lender-wise foreclosure terms instantly
Calculate exact savings with prepayment
Avoid penalty by choosing lenders with zero-preclosure charges
Digitally request foreclosure or prepayment—no paperwork required
🔁 Switch to a better loan with Vizzve’s Balance Transfer feature if foreclosure isn’t viable yet!
FAQs – Vizzve Finance Answers Your Top Questions
Q1. Can I prepay my Vizzve car loan anytime?
Yes, most Vizzve lending partners allow prepayment after 6–12 months.
Q2. Will I save interest by foreclosing early?
Yes, but it depends on the time of foreclosure. Use Vizzve’s interest-saving calculator.
Q3. Are there any charges for foreclosure with Vizzve?
Minimal to zero, depending on your lender. Vizzve clearly shows all charges upfront.
Q4. What documents do I need for foreclosure?
Loan account number, ID proof, and payment instrument. Vizzve makes it fully digital.
Final Word: Smart Loan Decisions with Vizzve Finance
Foreclosing or prepaying a car loan can be a smart financial step—but only if done right.
With Vizzve Finance, you get:
Transparent lender comparisons
Instant charge calculations
Paperless foreclosure request
No penalty options
Don’t just pay early—pay smart with Vizzve.
Ready to Close Your Loan Early?
➡️ Log in to Vizzve and check your foreclosure eligibility in minutes.
➡️ Maximize savings. Minimize stress. Fully online.
Published on 3rd july
Published : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.