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It is usually seen that individuals borrow money to meet some uncertainties in their lives. Most of the individuals who have taken personal loans tend to close their loans after the fulfillment of their necessities or after a point in time when they have overcome the uncertainties in their lives. Generally speaking, any loan is a burden for an individual. Therefore the sooner a person is freed from their loans, the better it is for them.
Basically, the process of closing a personal is same in the case of all banks. But some charges like foreclosure charges, prepayment charges etc. keep varying from one bank to another.
Formalities after Closing a Personal Loan
Closing an HSBC Personal loan provides a relief for the borrower as the financial burden upon him is reduced to a great extent. Certain formalities are to be made after the HSBC Personal Loan account has been closed.
1. Receipt of Acknowledgement for Pre-closure: If you are individual who has closed the loan before the completion of loan tenure, then you will receive a receipt of an acknowledgment from the bank. It is always advisable to pay for the pre-closure via a DD or cheque rather than paying with cash.
2. Receive all documents from the bank: After the personal loan is closed, you need to collect back all the documents that you had submitted to the bank during the loan were sanctioned to you.
3. Certificate of No Due: NOC is a proof that says that you have closed your personal loan account legally. It also confirms that the borrower does not have any dues that are outstanding. Though it is the lender’s duty to send you the NOC after the closure, it is your responsibility also to ask for the NOC.
4. Obtain a CIBIL Report: After a time period of 45 days of the personal loan closure, you need to obtain the CIBIL Report closing the loan, get a report from CIBIL and verify if the lender has made an update regarding your personal loan closure in the CIBIL records. If there is no information regarding your personal loan closure, then you will have to ask the bank to update the information in the CIBIL records. It is recommended that you do this entire process in a written format so that there is a proof that you have completed the required formalities after closing your personal loan account.
5. Apart from the above documents, it is important that you maintain a set of duplicate copies for all the documents that are related to your personal loan. It is also advisable to keep a set of all these documents with you as a soft copy in a mail.
The main idea behind the execution of all these steps is to resolve the disputes in a hassle-free manner if they arise in future and also to avoid a difference of opinion that may occur if the bank says that there are some dues that are yet to be paid by you.
How to Close HSBC Personal Loan through Creditseva
Creditseva’s real time loan closure platform will help you in getting the best offers from banks so that you can close the bad loans and make payments to the banks directly. By availing the help of Creditseva’s rectification tool you can easily track errors and report these errors in just few seconds to the relevant credit bureaus and get them fixed at the earliest.
HSBC Personal Loan Closure FAQ’s:
1. Can I pre-close my HSBC Personal Loan? Do I have an option to pre-close a loan?
Yes, you can pre-close your HSBC Personal Loan. The HSBC Personal Loan can be pre-closed after 6 months of its disbursement.
2. What is the procedure for pre-closure of an HSBC Personal Loan?
After the loan is disbursed, you need to intimate the bank by writing a letter saying that you want to close your personal loan. You can close your personal loan account within 30 days of disbursement of the loan.
3. What are the pre-closure charges for an HSBC Personal Loan?
The pre-closure charge for an HSBC Personal Loan is 3.75% on the principle that is outstanding.
4. When can I foreclose my HSBC Personal Loan?
You can foreclose the personal loan after 6 months of its disbursement.
5. What are the foreclosure charges for an HSBC Personal Loan?
The foreclosure charge for an HSBC Personal Loan is 4% on the loan amount that is outstanding.
6. Can partial foreclosure of HSBC personal loans be made?
No. Partial repayment of HSBC personal loans is not available. However, you can get in touch with the phone banking advisors who will readily guide you through the available option
7. Will I have to repay only the principal amount, if my loan gets closed?
You will have to pay the principal amount including the interest that is accrued from the date of the disbursement of loan till the loan closure date.
8. How many days will be taken to close my HSBC Personal Loan?
An HSBC Personal Loan account can be closed in a minimum of 3 days of working. The closure process is initiated after the amount for the closure has been paid completely.
9. What will be updated in my Credit Report after the closure of my HSBC Personal Loan?
You can see the updated information about your loan and its closure is mentioned in your credit report after the completion of the loan closure process.
Personal Loan Closure By Banks
- Personal Loan Closure
- 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