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Personal Loans are very helpful in times of urgent needs. The best thing to do as a borrower is to take a personal loan when the need arises and close the loan as soon as you have the funds available to you. While closing a Personal Loan from Bank of Baroda, it is important that you keep in mind the foreclosure policy and the charges that would be applicable as the penalty.
How to Close Bank of Baroda Personal Loan through Creditseva
In all, it is a good decision to close your Bank of Baroda Personal Loan as it helps you in saving your money by not having to pay any more interest on the loan. The earlier you close your personal loan, the better it is for you. Closing a personal loan requires a lot of carefulness. If you wish to close your personal loan with ease and do not want to face any difficulties or uncertainties in the personal loan closure process, Creditseva is the right destination for you. Avail the credit advisory services of Creditseva and stay away from your financial burdens and pressures. Creditseva’s app will help you to keep your table clean, take right decisions and get peace of mind.
Points to Remember after Closing a Bank of Baroda Personal Loan
Whenever a personal loan account is closed, the borrower feels relieved. Sometimes, it becomes a problematic situation for an individual if certain steps are not followed. Given below are the steps that should be followed while closing a Bank of Baroda Personal Loan.
1. Gather all the important documents from the Bank of Baroda: After closing the Bank of Baroda Personal loan, you need to gather all the important documents that you have submitted to the bank at the time of getting the loan sanctioned. Among all the important documents, one most important document to be taken after closing the loan is the letter of acknowledgement.
2. Obtain A No Due Certificate: An NOC is a proof that depicts that you have no amount left as outstanding. Actually, the bank is responsible for sending you the NOC after you have closed the loan, but it is also your duty to not forget to collect the NOC.
3. Acknowledgement of Pre-closure Receipt: If you have pre-closed your Bank of Baroda Personal Loan, you need to collect the receipt that acknowledges your personal loan pre-closure. It is advisable not to make the payment for pre-closure by cash because if you make the pre-closure with a cheque or DD, you will have a proof that you have pre-closed your personal loan.
4. Receive A CIBIL Report: It is important to receive a report from CIBIL after 45 days of your personal loan closure. This step is to ensure that your lender has updated your loan closure to CIBIL. If your lender has not updated your loan closure information with CIBIL, you will see that there is mention of the same in your CIBIL Report.
In such a scenario, you need to request the bank to update your loan closure at the earliest to CIBIL. Also, make sure that you have done all this communication to the bank in a written format like a mail or a letter.
5. Maintain Duplicate Copies: Apart from the above steps, it is important that you maintain the duplicate copies of all your documents that are related to your loan. You never know which document is required at what point in time.
Things to be kept in mind
- Right Time to Prepay: It is good if a borrower prepays at the beginning years of the loan because, during the beginning years, the outstanding principal amount is maximum.
- Right Amount to Be Repaid: The suitable amount to be repaid by you is at least the EMI of one month.
- Right Frequency to Prepay: You can do the prepayment either on a regular basis or on a lump sum basis. You can also make the prepayment on a monthly basis.
- The cost of Prepayment: The cost of prepayment differs if you have closed your personal loan from the funds that you own or by borrowing the funds.
Is It a Good Decision to Prepay Your Personal?
Prepaying your personal loan is sometimes a good option and sometimes it is a bad option. Basically, there are two types of prepayment options. You can either prepay your personal loan in part or pre-pay your personal loan in full.
Example: If you are an individual who is expecting an appraisal in a particular year, then you should go for foreclosing your personal loan and make use of the benefit of the chance to pay lesser interest. In general, the foreclosure or pre-closure of a loan can be done either by the bank or the borrower.
Foreclosure of a loan by the borrower
A borrower decides to foreclose a loan when he has the required funds available. In this process, he pays the amount that is outstanding and closes the loan. This will result in him, getting rid of the EMIs and he can also save money that would have been paid by him as interest.
Foreclosure of a loan by the bank:
This will usually happen when the borrower has failed to make the payments for their EMIs.
Bank of Baroda Personal Loan Closure FAQ’s:
1. When can I pre-close my Bank of Baroda Personal Loan?
You can close your Bank of Baroda Personal Loan immediately after paying the first EMI.
2. What are the pre-closure charges if I close my Personal Loan in the seventh month?
There are no pre-closure charges for Bank of Baroda Personal Loan after 6 months of the loan.
3. What are the pre-closure charges within 6 months of the Personal Loan?
The pre-closure charges within 6 months of Bank of Baroda Personal Loan are 4% on the balance that is outstanding according to the EMI Schedule.
4. What are Foreclosure charges for Bank of Baroda Personal Loan?
Foreclosure charges are applicable when the borrower is willing to repay the entire amount of the loan prior to the completion of the loan tenure.
Personal Loan Closure By Banks
- How to Close Personal Loan
- Axis Bank Personal Loan Closure
- Andhra Bank Personal Loan Closure
- HDFC Bank Personal Loan Closure
- ICICI Bank Personal Loan Closure
- SBI Personal Loan Closure
- Citibank Personal Loan Closure
- Bank of Baroda Personal Loan Closure
- Capital First Personal Loan Closure
- Allahabad Bank Personal Loan Closure
- Fullerton Personal Loan Closure
- IDBI Bank Personal Loan Closure
- IndusInd Bank Personal Loan Closure
- Standard Chartered Bank Personal Loan Closure
- Tata Capital Personal Loan Closure
- Union Bank Personal Loan Closure
- Bajaj Finserv Personal Loan Closure
- Kotak Bank Personal Loan Closure
- Yes Bank Personal Loan Closure
- SBH Personal Loan Closure
- HSBC Personal Loan Closure
- Oriental Bank Personal Loan Closure
- RBL Bank Personal Loan Closure
- PNB Personal Loan Closure
- J&K Bank Personal Loan Closure
- IOB Personal Loan Closure
- Karur Vysya Bank Personal Loan Closure