Yes, you can prepay and foreclose your loan against a property overdraft. To do this, there are some factors to consider-
1. Lock-in period - There is a 12-month lock-in period during which you cannot prepay your OD loan against the property. If you wish to prepay your loan during the lock-in period, lock-in period charges and foreclosure charges will be applied. For a loan against property overdraft, the lock-in charges are = (rate of interest x outstanding balance on the date of foreclosure x balance lock-in) + foreclosure charges at 4% of the outstanding balance.
2. After the lock-in period - After the 12-month lock-in period, you can prepay up to 25% of your outstanding balance in two payments. For this, you will not be charged any additional fee or penalty. However, if you wish to prepay a larger part of the loan in full, foreclosure charges at 4% of the outstanding balance will be applied.