A personal loan can be closed, either by chance or choice. Typically banks/financial institutions relinquish loans that have turned into bad credit. This is the amount which is either bad due to bankruptcy or business financial losses. Some loans are written off by banks when they are not fully recoverable.
At some point in time, you realize to pay off your pending bills or loan, plan a fulfilling trip, manage a lavish wedding, purchase the best market appliances, pay for the ongoing expenses, etc. What is the solution then? You choose a personal loan!
A Personal Loan is much more convenient compared to the wide plethora of more flexible options in terms of its usage. Owing to its extremely talked about USPs, personal loans are popular. They are even preferred for having on time disbursals, reasonable interest rates, flexible repayment, etc.
Let’s have a closer look at what banks essentially do?
Banks/ financial institutions mostly disburse loan amount within 24 hours or earlier. This is the basic feature of a reliable financial institution. Infact, the loan amount reaches you swiftly.
Undoubtedly, a personal loan can better satisfy the financial requirements of a tight situation. However, the moment you reach the last EMI, it only gets better for the next personal loan consideration.
The motivation is to preserve savings and focus more on investment options and edgy loan schemes.
Whenever a financial plan is under making, loan closure becomes the first step towards a concrete future. A personal loan closure doesn’t just mean closing your previous loans, it simply means following a legible path. Proper procedural closure is extremely significant!
So now comes the opportunity to discuss why is it important to close a loan? Under are some of the reasons for the same:
- finished outstanding debts in your name
- Calculated EMI values in your name for current supplementary personal loans or investment avenues
- Permits avenues for better investment or loan options from a reputed lending institution.
- Enhanced Credit Score
Below are the main pointers to effectively close a personal loan application, at the right time and need.
- Identify your needs well-
A personal loan number for effective interaction and this is available on the loan account statement. Also, look at the online banking facilities for better exchange of services. All an individual need to do is facilitate oneself with a banking facility, and use net banking as and when important.
Get an Identity proof in place: have a ready copy of the passport, PAN card, Aadhaar card or any government issues ID card.
Which are the other loan papers: This is including the approval letters, loan account statements and all papers issued by the respective bank.
Additional papers in demand for pre-closure of personal loan documents in case of pre-closure
Pre-closure price: Physically visit the bank and get your personal loan sanctioned. Approach the loan officer to validate the loan amount and confirm the pre-closure charges and costs. Once done the exact amount gets sanctioned within limits to close the bank account.
Cheque or demand draft closure: Prepare a demand draft in favor of the concerned bank and write off the outstanding amount. Do not pay the amount in cash for safety reasons.
Process for closure:
- Physically visit the bank with the set bundle of documents as quoted.
- Fill up the form for pre-closure along with a persuasion letter, for easy closure of loan.
- Pay the residual amount.
- Sign papers If any.
- Take acknowledgment of the balance to be paid off
The Personal Loan will close once an adequate amount is received by the bank
The bank will dispatch a loan closing letter that must be taken care of.
Get Home Credit Personal Loan and live the life of your choice!