A personal loan comes handy to meet all your varied urgent needs, right? But just like everything has its own pros and cons, it would not be wrong to say that an online personal loan has its own cons as well. And, one of the biggest disadvantages of this unsecured credit facility is the higher personal loan interest rates at which it is available.
Yes, being an unsecured loan, it comes with higher rates, which at times becomes difficult for many to repay as your EMI and Interest Outgo also increases hence higher burden will be on your shoulders.
This is the reason that why many borrowers want to close their loan as soon as possible. Now that we are talking about closing this unsecured credit facility, it is also important that we should talk about pre-closing the same. Now closing and pre-closing both are different scenarios, there are different procedures for the same. So, if you are someone who either wants to close or pre-clore his loan, read this article below.
Procedure for Regular Closure
In this case, an individual closes his loan after completing the entire tenure. After fully repaying the loan, there are few steps you need to know:
- After successfully repaying this unsecured credit, you need to get in touch with the lender in order to close the same.
- Before you visit the bank,make sure you carry an ID Proof, loan account number and a cheque if there is any amount to be paid. The bank, after doing the successful verification of the documents and loan amount, close your existing loan.
- Soon after completing the process, your account will automatically be closed. Don’t forget to take the Non- Objection Certificate (NOC) from the lender, which is proof that your loan has been closed. The certificate states that a borrower has repaid the entire loan and there is no outstanding balance pending.
- In addition to this, you can also get in touch with the customer care team regarding the same.
Procedure of Pre Closure
Repaying your outstanding balance before the scheduled tenure is called a preclosure. A borrower needs to continue paying his loan till 9 or 12 EMIs, after that he can closes the same. Talking about pre-closing the loan, it allows an individual to save big on his Interest Outgo, hence allows to do a lot of savings. While foreclosing the same, there are some lenders who levy the preclosure charges as well. Yes, usually, most of the lenders charge 2%-5% of the principal outstanding at the time of pre-closing a loan.
Let’s just take a look at the steps involved in the article below.
- Pay visit to the bank from where you have taken the loan
- Don’t forget to bring the necessary documents such as ID Proof, Bank Statement, mentioning the clearance of your last EMI, Loan Account Number, Cheque/DD for prepaying the entire amount
- After the loan prepayment via cheque, cash or DD, the bank will give you an acknowledgment letter, which has to be kept safely for the future reference.
- After completing all the steps, the bank will send you the agreement documents, few days after the loan closure.
So, hope you will keep the above points in mind while closing or pre-closing your Standard Chartered Bank personal loan online.