Yes, pre-payment of personal loans is generally allowed in India. Pre-payment is the act of paying off a loan in full or in part before its scheduled due date.
However, it’s important to note that some lenders may charge a pre-payment penalty fee if you choose to pay off your personal loan before the due date. This fee varies from lender to lender, so it’s important to read the terms and conditions of your loan agreement carefully before taking out a personal loan.
Also, some lenders may have a minimum lock-in period, during which pre-payment may not be allowed or a penalty may be charged. Again, it’s important to read the loan agreement carefully to understand the terms and conditions related to pre-payment.
Overall, pre-payment of personal loans can be a good option if you have the financial means to pay off your loan early and want to reduce the overall interest cost of the loan.