How to quickly Pre-Close my Personal Loan?

When you have an immediate need for money, personal loans can be extremely useful. Personal loans are the most suitable during emergencies, and medical commitments. Because they are available at a stone throw distance, lenders compensate their loans through high interest rates. Their insecure nature can make them an extraordinary tale of success! It may have been reiterated innumerable times that a home loan can be quite easy however its partially true. This proposition is not as simple as it looks to be! What are the questions that interest a borrower the most? The common most questions of a borrower are related to service charges, interest charges and miscellaneous fees levied at the time of approval. Foreclosure and prepayment of the personal loan are the critical most factors when taking a personal loan. We can have a closer idea of the terminology related to personal loan and its closure for a fair understanding. Let’s go ahead: Regular Closure of a Personal Loan Through this loan repayment, the prospective borrower makes regular payments to pay off the loan amount in a pre-decided period of time as per the agreement. Following are the steps to quickly get a loan closed: STEP 1: Pay the last personal loan installment, and intimate the bank for loan closure. STEP 2: Collect all required documents like identity proof, address proof, cancelled cheque and loan account number. Your documents will be fully verified before taking a closure call. STEP 3: After finishing up the paperwork, the bank will issue an ‘Non-Objection Certificate’ (NOC) which proofs what a borrower has paid up and that no such outstanding exists anymore. STEP 4: For any kind of support in closing a personal loan, you can get in touch with the customer care representative from the bank. Foreclosure of Personal Loan Foreclosure of a personal loan is basically paying up all your outstanding amount when the loan tenure ends.  A few financial institutions also charge a small penalty for foreclosure of a personal loan. Although, a foreclosure does not greatly impact the interest rates and existing debt. Different banks have different lock in periods, which means every borrower will have to close the loan accordingly.  For all the interest lost, banks and financial institutions choose to charge an interest. Quick Steps to Foreclose a Personal Loan: STEP 1: Physically visit the bank which sanctioned your personal loan STEP 2: Keep relevant documents like ID proofs, bank statements, salary slips, cheque, demand draft etc., which will be used to pay up the entire balance. STEP 3: The lending institution should charge a certain amount which will be combined with a prepayment. STEP 4: When the final amount is settled, the entire amount is paid through a cheque or demand draft. An acknowledgement letter must be received for future references. After you’re done with the formalities, an agreement is sent to you. Part Payment of Personal Loan Making a partial repayment can be called as part payment of personal loan. If you luckily have an idle stack of money, then you choose to repay the amount earlier. This could lead to reduced EMIs or time period. Closing before the tenure can have an impact on your credit score as well. It’s good to be well informed, when the personal loan is pre closed. Read More: How to apply for Online Personal Loan from Mobile App

Post Your Comment