Eligibility Criteria
Customer forecloses a loan that has transfer amount exceeding 1500, before the first due date.
Waiver Calculation
a. Waiver amount = max(Loan Amount + Interest till the date of foreclosure – Pay total by the 5th (as mentioned in KFS),0)
a. Waiver amount = Loan Amount + max(Interest till the date of foreclosure, interest paid till date) – Pay total by the 5th (as mentioned in KFS)
Loan amount = Amount transferred to account + flat fee + Insurance if any
Interest till the date of foreclosure = (No of days for which loan is availed + 1) * interest rate (as defined in KFS) * Loan amount / 365
Interest paid till date = Interest paid at the time of repayments in case of multiple repayments
Illustration
Assume the following loan parameters
| Amount transferred to account | 10,000 |
| Flat fee | 500 |
| Insurance amount | 200 |
| Loan Amount | 10,700 |
| Interest Rate | 36% |
| Loan Disbursal date | 28th May 2024 |
| First Due date | 5th July 2024 |
Scenario 1 – Foreclosing the loan in a single repayment
Now assume you foreclose the loan on 15th June.
- Interest charged = 20 days * (10,700) * 36% / 365 = 211.07
- Total payable before 5th July (Mentioned in KFS) = 10,700
- Processing Fee refund = 10,700 – 10,700 + 211.07 = 211.07
Scenario 2 – Foreclosing the loan in multiple repayments
- EMI due on 5th July (1,084) has been paid on 15th June which includes an interest of 412 rupees and a principal of 672 rupees.
- Loan is foreclosed on 1st July. The amount collected will be
- 10,700 (Payable mentioned in KFS) - 1,084 = 9,616 (Principal amount only)
- Processing Fee refund
- 10,700 – 9,616 – 672 = 412