Foreclosure vs. Part-Payment: Know the Key Loan Terms
When managing a loan, you may come across two important terms — foreclosure and part-payment. Both help you reduce interest burden, but they’re not the same.
Let’s break it down for you — Vizzve style.
What Is Foreclosure?
Foreclosure means you fully repay the entire outstanding loan amount in one go before the original tenure ends.
Key Features of Foreclosure:
Ends your loan completely
No more EMIs
Saves significant interest
May incur foreclosure charges (2%–5% depending on lender & loan type)
What Is Part-Payment?
Part-payment is when you pay an extra lump sum (above your regular EMI) to reduce the outstanding principal, while the loan continues.
Key Features of Part-Payment:
Loan continues, but EMI/tenure may reduce
Can be done multiple times
Helps save on interest
Usually no penalty on part-payment (especially for floating-rate home loans)
Foreclosure vs. Part-Payment – Quick Comparison
| Feature | Foreclosure | Part-Payment |
|---|---|---|
| Definition | Full repayment of loan | Partial repayment of principal |
| Loan Status | Closed permanently | Continues with lower principal |
| Interest Savings | High | Moderate |
| Charges Applicable | Yes (in most cases) | Usually No |
| Ideal For | High surplus funds, closing loan | Occasional bonuses/savings |
Vizzve Finance Expert Tips
✅ Foreclosure is best when you want zero debt & peace of mind
✅ Part-payment suits those who want to save interest slowly over time
✅ Always check your lender’s charges and lock-in period before doing either
✅ Use Vizzve to find loans with zero foreclosure or part-payment penalties
Final Takeaway
Both foreclosure and part-payment can save you money and stress — but they serve different needs.
Whether you're planning to pay off your loan early or reduce the burden gradually, Vizzve Finance helps you make the smart move — with complete guidance, cost transparency, and lender match.
💡 Freedom from EMIs starts with the right strategy — and Vizzve is here to guide you.
Frequently Asked Questions (FAQs)
Q1. Is foreclosure better than part-payment?
It depends. If you can repay the full amount, foreclosure brings complete closure. Otherwise, part-payment offers steady relief.
Q2. Will I be charged for part-payment?
Most lenders don’t charge for part-payment, especially on floating-rate loans.
Q3. Can I make multiple part-payments?
Yes! You can make part-payments whenever you have extra funds.
Q4. Does foreclosure improve my credit score?
Yes. Foreclosing a loan responsibly can positively impact your credit history.
Q5. Can Vizzve help with part-payment or foreclosure planning?
Absolutely! From lender negotiation to penalty checks — we’ve got your back.
Published on : 22nd July
Published by : SMITA
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