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Is it good to pre closure personal loan?
Full Prepayment: Firstly, if the prepayment in full can be done relatively early into the tenure of the loan, a customer tends to save a lot on the interest. A personal loan generally has a lock in of about one year after which the entire outstanding amount can be prepaid. For example, if the personal loan is for Rs.
Can I close my HDFC personal loan after 1 year?
HDFC Personal Loan Preclosure Charges As discussed above the bank does not allow any prepayment or pre-closure within one year of the first EMI. Only part payment is allowed after that. This is allowed only once in a financial year and twice during the entire loan tenure.
Can personal loan can be settled?
The lender may give you a one-time settlement option where you take some time off and then, settle the loan in one go. Since you are given some time, you may readily accept this offer. Upon settling the loan in one go later, the status of this loan will be recorded as ‘settled’ in the credit report.
What is the best way to close personal loan?
What to do:
- Visit bank with the complete set of documents (as mentioned above).
- You may be required to fill a form or write a letter requesting pre-closure of the Personal Loan account.
- Pay the pre-closure amount.
- Sign the required documents, if any.
- Take acknowledgement of the balance amount you have paid.
What are the pros and cons of pre-closure of a personal loan?
The pre-closure facility reduces your debt burden; hence it would be a good option for your financial health. No impact on your credit score: Foreclosure or pre-closure of the Personal Loan does not affect your credit score.
What is the difference between a pre-closure and a presclosure?
A presclosure, on the other hand, is the process of paying off your entire loan amount ahead of its tenure. In the case of a presclosure, the entire debt is cleared off thus closing the personal loan account. How long does it take for HDFC Bank to send the confirmation for a pre-closure?
How does pre-closing a loan affect your credit score?
You can do this, either by repaying the whole amount over the tenor of the loan, or prematurely closing the account prior to the due date. While the former is called a closure (or a regular closure), the latter, termed pre-closure or foreclosure, greatly reduces the debt burden, giving your credit score a facelift in the process as well.
How to pre close a personal loan online?
You can initiate the pre-closure of a Personal Loan online by visiting the official website of the bank. The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially.