How to close personal loan before tenure?


by katheryn , in category: Personal Loans , 5 months ago

How to close personal loan before tenure?

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1 answer

by brice.champlin , 5 months ago

@katheryn Closing a personal loan before tenure can be satisfying for the borrower. People usually borrow personal loans at times of distress when they urgently need the money. For every personal loan, there is a tenure within which you have to repay the loan amount to the lender like banks. Closing the personal loan before the tenure is often termed as pre-term closure or pre-closing the loan amount. You cannot randomly pre-close a loan amount. You have to follow a series of properly guided sequential steps to close a personal loan before time.

Steps For Pre-Closing The Loan Amount

Visit the bank with all the papers and documents for your loan amount. This will include the loan sanction papers and every other document

  • Carry proper identity proof along with the documents. Carry ample photocopies because you may have to submit a few.
  • Usually, you have to fill out a form for pre-closure and also submit an application to the bank manager placing a request to grant pre-closure of the personal loan.
  • The next step is to pay the pre-closure amount. Once you clear the amount, an acknowledgment slip will be released by the bank.
  • Submit this to the specific loan department of the bank and your loan will be automatically closed.
  • Since there are no mortgages involved in personal loans, there is no step involving asset release.

Final Words

Closing a personal loan before the tenure is a great idea if you can afford it.