Loan agreement

First remit the amount with actual interest and entire principal through demand draft (Account payee crossed) by Regd post and let the lender either reject or proceed on you for recovery of such balance interest even after the principal is returned.  Every issue depends on a mutual agreement which is in writing.  If there is a clause that prepayment is permitted subject to payment of interest for the full contractual period, you are bound to pay such amount with interest for 11 months, if not or the agreement is silent, you have to pay interest only for that period of the amount actually remained with you.

That will depend wholly on the terms of agreement ,,,,

What is the rate of interest to be paid?

Hello Vishnu, 

Your query has been answered by Advocate Vaibhav Kalra in this youtube video - https://www.youtube.com/watch?v=2-iyVqsW4kg from  -  1.17.30 - 1.19.36 

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