← Full guide: Personal Loan Part-Prepayment: Charges, EMI, and Tenure Recast

The lender charges a fee on a partial prepayment you think should be free

Confirm the sanction/renewal date, rate type at the time of prepayment, loan purpose and lender category.

Start here

Confirm the sanction/renewal date, rate type at the time of prepayment, loan purpose and lender category. Match those facts to RBI’s 2025 directions before treating the charge as prohibited.

What applies to this exact problem

First check

Confirm the sanction/renewal date, rate type at the time of prepayment, loan purpose and lender category. Match those facts to RBI’s 2025 directions before treating the charge as prohibited.

What to do

Ask the lender to state the contractual and regulatory basis for the charge and how it was calculated on the amount being prepaid. Keep the KFS/sanction terms and the dated part-prepayment quote.

Done when

The lender either removes a charge that does not apply or gives a written basis that identifies why this loan falls outside the specified no-charge coverage.

If it still fails

Use the lender grievance process for a documented charge mismatch. Use RBI CMS only when the complaint and regulated entity meet the Ombudsman scheme conditions.

Check these first

  • First check: Confirm the sanction/renewal date, rate type at the time of prepayment, loan purpose and lender category. Match those facts to RBI’s 2025 directions before treating the charge as prohibited.
  • What to do: Ask the lender to state the contractual and regulatory basis for the charge and how it was calculated on the amount being prepaid. Keep the KFS/sanction terms and the dated part-prepayment quote.
  • Done when: The lender either removes a charge that does not apply or gives a written basis that identifies why this loan falls outside the specified no-charge coverage.

Fix it in this order

  1. First check: Confirm the sanction/renewal date, rate type at the time of prepayment, loan purpose and lender category. Match those facts to RBI’s 2025 directions before treating the charge as prohibited.
  2. What to do: Ask the lender to state the contractual and regulatory basis for the charge and how it was calculated on the amount being prepaid. Keep the KFS/sanction terms and the dated part-prepayment quote.
  3. Done when: The lender either removes a charge that does not apply or gives a written basis that identifies why this loan falls outside the specified no-charge coverage.
  4. If it still fails: Use the lender grievance process for a documented charge mismatch. Use RBI CMS only when the complaint and regulated entity meet the Ombudsman scheme conditions.
  5. Match those facts to RBI’s 2025 directions before treating the charge as prohibited.
  6. Keep the KFS/sanction terms and the dated part-prepayment quote.
  7. Use RBI CMS only when the complaint and regulated entity meet the Ombudsman scheme conditions.

Evidence to keep

  • Loan agreement/key fact statement — keep it with the evidence for “lender charges a fee on a partial prepayment you think should be free”.
  • Ledger and payment receipts — keep it with the evidence for “lender charges a fee on a partial prepayment you think should be free”.
  • NOC/closure letter when relevant — keep it with the evidence for “lender charges a fee on a partial prepayment you think should be free”.
  • Complaint and recovery-agent evidence where relevant — keep it with the evidence for “lender charges a fee on a partial prepayment you think should be free”.

Do not make it harder

  • Paying an unverified recovery caller For “lender charges a fee on a partial prepayment you think should be free”, that can hide whether the underlying issue is actually resolved.
  • Sharing OTPs or credentials For “lender charges a fee on a partial prepayment you think should be free”, that can hide whether the underlying issue is actually resolved.
  • Assuming account closure automatically updates every bureau immediately For “lender charges a fee on a partial prepayment you think should be free”, that can hide whether the underlying issue is actually resolved.

How you know it is fixed

  • The correct ledger shows the money in the right place with the right value date for “lender charges a fee on a partial prepayment you think should be free”.
  • Any duplicate charge, interest, fee, mandate, or outstanding created by the incident is also corrected for “lender charges a fee on a partial prepayment you think should be free”.

If this still isn't resolved

  1. Lender grievance officer State the unresolved issue explicitly: “lender charges a fee on a partial prepayment you think should be free”.
  2. RBI CMS for eligible unresolved regulated-entity complaints State the unresolved issue explicitly: “lender charges a fee on a partial prepayment you think should be free”.
  3. Police/cybercrime route for fraud, impersonation, or immediate threats State the unresolved issue explicitly: “lender charges a fee on a partial prepayment you think should be free”.

Parent-guide references

These references support the parent guide and escalation context. Verify provider-, model-, policy-, or jurisdiction-specific details before an irreversible step.

Need the complete context?

This page solves one branch. The parent guide covers the full decision, edge cases, alternatives, and related checks.

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