Personal loans is the most important financial product in the market. They provide a great help to individuals, in need of money for daily activities or in an emergency situation. Also, the whole procedure is available online, thus individuals need not put any extra effort! Personal loans are of many uses such as, health treatments, house repair, wedding etc.
However, in situations, where personal loan applicants face surplus of money, they should consider applying for pre-closure of personal loans and stop burdening themselves with heavy repayments. Mostly, in India, lenders tend to allow pre-closure of personal loans with extra charges for closing. Also, only after six months of payments, individuals are allowed to close the loan account. Borrowers are suppose to complete all the outstanding payments or other charges before closing loan.
Lets further read more about, how to close personal loan early, its complete procedure is given bellow
Personal Loan Pre-Closure Procedure:
It is not a herculean task, to pre-close personal loan, Anyhow it is important to pay attention to the procedure as its different for different lenders. So, assess information from the particular lender, before applying for the closure.
Some of the basic steps, individuals can follow to pre-close a personal loans are as follows:
- Borrowers cannot pere-close personal loans online. Therefore, individuals require to visit Bank, here you can apply to close the loan. Contact customer’s care of the particular branch to know more in detail.
- Visit the bank and take assistance of the bank executive from loan section for pre-closure procedure and conditions. Once individuals have enough information about the process, they can request for a pre-closure form.
- Go through the form carefully and fill all the necessitate details of loan and personal as required in the form. Fill the form with out any blank space and at last sign the form to complete form filling and submit.
- Individuals are suppose to submit few documents for the closure. They are as follows:
● Identification proof: passport, driving license, Aadhar card
● Loan documents
● Bank statements that reflects clearance and payments of the last EMI.
● Pre-payment statements, can be availed from the bank on request. You can receive it either by online or via post.
- After the submission of the form, one can pay by cheque, demand draft, or cash.
- In case, the particular potential person cannot visit the bank, on behalf of the person, a representative can be sent. But the representative must carry authority letter signed duly by the potential borrower. Also, the representative must submit documents such as:
● Loan borrower’s identification proof like PAN card, Passport, Driving License or Voter ID.
● Authorisation letter given by loan applicant.
- After completing the submission, Bank will alot an acknowledgement letter, which must be carefully saved.
- The final closure is sending loan closure agreement to the applicant after a few days ofthe loan closure.
Thus this the main process, one must follow to close personal loans.
The Bottom Line:
Getting personal loans and satisfying the financial need, is a big relief. However, sometimes its important to get personal loan closure, while facing debts, financial burdens and defaults. Many times its overwhelming and stressful to the individuals, who have responsibility of repayments and repay most of their earnings. Therefore, apply for personal loans only at the time of need from Buddy Loan; and get the availability of closure, when repayments are burdening. Also, avail personal loans with no additional costs and save quite a lot of money.