Things to Know While Closing a Personal Loan

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Things to Know While Closing a Personal Loan
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• Different types of loan closure

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Regular closure

• Borrower closes the loan as per the loan
  agreement.

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Pre-closure

• Borrower closes the loan before the binding due
  date.

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Bad loan closure

• If the borrower fails to repay their dues, the
  lender will write off the loan.

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Part-prepayment

• Under this, the lender increases the EMI amount
  for any given month.

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Understand the charges

• Foreclosure or pre-payment attracts additional
  fees or penalties.

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NOC procedure

• Borrowers must be aware of the process of
  obtaining a NOC.

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Credit update

• Ask your lender to send a credit upgrade request
  to the rating agency.

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Process of early personal loan closure

• Inform your lender that you intend to close your
  loan.
• Submit all your relevant documents.
• Obtain a NOC certificate from the lender.

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Documents required for a personal loan closure

• Request letter along with a duly filled loan
  closure application form
• Identity and address proofs
• Bank statement specifying EMI payment details
• Cheque or demand draft for clearing outstanding
  dues.

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Can the lender reject your pre-closure
application?

• Lenders may not allow you to foreclose on a loan
  during the first year after taking it out.

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• You can easily foreclose your personal loan and
  the additional fees associated with it are also
  kept to a minimum.

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Thank You !
Would Love to hear from you.
Hero Fincorp Limited
09, Basant Lok, Vasant Vihar, New Delhi -
110057
Tel [phone]
Email corporate_at_herofincorp.com
Website https//www.herofincorp.com/
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Personal Loan