- HOW IT WORKS?
- Credit Score & Report
- Credit Bureaus
It is important to have a look at certain factors before deciding to pre-close a personal loan. Closing a loan before the completion of its tenure is known as pre-closing. Pre-Closing a personal loan is sometimes beneficial and sometimes a loss.
Prepayment of a Personal Loan: A personal loan is said to be pre-paid when the borrower has paid the entire loan amount that is outstanding either completely or partially, prior to the date that is due in the agreement of loan. Though pre-payment of a personal loan provides the borrower with a lot of financial relief, it is not a decision that has proved to be good always.
Procedure to Close IDBI Bank Personal Loan
1. You need to approach the IDBI bank by writing a letter which states that you are willing to close the loan.
2. The bank will ask to fulfil certain formalities. You will be given few guidelines to follow while you are in the process of closing the IDBI Personal loan.
3. After completion of all the formalities mentioned by the bank, your personal loan will be closed.
How to Close IDBI Bank Personal Loan through Creditseva
Creditseva will help you in closing your personal loan in an easy and convenient manner. You will be given complete support with the help of apps and tools provided by Creditseva and this will enable you to close your loan in an appropriate way without facing any difficulty and inconvenience.
Advantages of Pre-Closing a Personal Loan
Basically, there are many advantages of pre-closing a personal loan, but given below are a few of them.
1. Early Relief from Debts is Always a Good Option:
Getting relieved from your debt obligations early is what all borrowers always want. By relieving yourself from your debts earlier than the stipulated time will always work in your favour and you can stop worrying about the ways to pay your debt every month and rather think about other investments.
2. Part Payment is also Helpful: If you have less cash which is not going to be sufficient in paying off the entire loan. In such a scenario, you can always opt for doing the part payment for the loan. While choosing this option, you need to assure that you are making the part payment at the earliest, so that you can minimise the maximum on the interest. It is recommended to make a part payment by paying in lump sum.
3. Complete Pre-payment: If you have the sufficient funds, then you can opt for complete pre-payment of the personal loan. Before opting for the complete prepayment of your personal loan, you need to make sure that you are well aware of all the details in your loan agreement.
Disadvantages of Pre-Closing a Personal Loan
Pre-Closing a personal loan is not always beneficial for the individuals. There are also some disadvantages associated with pre-closing a personal loan.
1. Loss of Huge Cash at a time: Some individuals feel that it is better to invest the money that one would use while making a prepayment. The individuals should not be in a hurry to pay off their loans at one stretch while they have the option to pay it in instalments via EMIs.
2. Penalty on Prepayment of a Personal Loan: It is important that you always ask the lender if there is any penalty for prepayment. Never forget to ask your lender if any prepayment penalty is charged, although most lenders don’t charge it.
The prepayment charges are different for different lenders. Some lenders charge higher amount whereas other lenders charge lower amount.
3. Illusion That Interest Charged Will Be Low: It is usually seen that borrowers feel that the interest charged will reduce after the prepayment of the personal loan. But this is not what actually happens.
Apart from the above factors, there are some other things too that should be considered while pre-paying your personal loan.
Important Points to Be Kept in Mind while Closing an IDBI Personal Loan
- It sometimes happens that the borrower is asked to pay a certain number of EMIs before the pre-closure of the personal loan.
- In certain cases, there are various offers for a personal loan pre-closure. These offers last for a limited period of time. Using these offers the borrower can take advantage of nil pre-closure charges.
- In some banks, there is a lock-in period for a loan. During this lock-in period, the loan cannot be closed before the lock-in period ends.
IDBI Bank Personal Loan Closure FAQ’s:
1. When is the prepayment allowed for IDBI Personal Loans?
The prepayment of IDBI Personal Loan is allowed immediately after the 1st EMI is paid.
2. What are the prepayment charges if an IDBI Personal Loan is closed before 6 months from the date of disbursal?
The prepayment charges are 2% of the loan amount that is outstanding if the personal loan is closed within 6 months of disbursal.
3. When is the foreclosure of IDBI Personal Loan allowed?
The foreclosure of an IDBI Personal Loan is allowed after the 1st EMI is paid.
4. What are the foreclosure charges for an IDBI Personal Loan?
The foreclosure charges for an IDBI Personal Loan are nil.
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