New Delhi, April 10 -- Prepaying the balance of a personal loan early, or foreclosure, is a smart financial decision that could reward you with thousands in interest savings. But it's a decision that needs to be examined very closely for the fees and procedures involved. The purpose of this article is to inform you of the fundamental principles of personal loan foreclosure so that you'll be in a position to make an informed decision.

By paying your total loan amount in advance, personal loan foreclosure allows you to efficiently terminate your debt early. While this results in significant savings in interest charges, remember that foreclosure fees are charged by most lenders as a means of trying to recapture the foregone interest income ...