Personal Loan Tips: If you do not want to pay interest on personal loan then do this work...
Whenever we need money in an emergency, then personal loan proves to be very helpful in such times. Compared to other loans, personal loans are easily available and for this, you do not have to mortgage any property. When there is no hope of getting money as per our requirement from anywhere, then a personal loan seems to be the better solution. Although we get the loan easily, later we have to face the hassle of EMI for its repayment for a long time.
Nowadays interest rates are continuously increasing and paying more interest seems heavy to everyone. In such a situation, if you have taken a personal loan and do not want to pay much interest on it, then you can pre-close the loan. Pre-closure is the process when you pay the entire amount before the end of the loan tenure. Here we are telling you about the ways to pre-close the personal loan.
It is important to know this before pre-closing the loan
Let us tell you that banks have different lock-in periods, before which you can close the loan. However, some banks or institutions providing loans charge a pre-closure fee to make up for the loss on the interest amount. Closing a personal loan in the right way is important as it can have an impact on your CIBIL score. In case of any problem related to this, you can contact the concerned bank.
How to pre-close a personal loan?
To pre-close a personal loan, you must first visit the branch of the concerned bank. Here you will have to go with documents such as ID proof, bank statement of the last EMI payment, and check or demand draft for re-payment. When you pay the loan balance through a check or demand draft, the bank gives you an acknowledgment letter. You have to take care of it. After a few days of pre-closing the loan, the bank sends you the loan agreement.
How to pay more than the EMI but not the full amount?
If you have more amount than the EMI of the loan and you want to use it to repay the loan, then you can do the same. This will reduce your loan tenure or reduce the EMI amount. This type of loan repayment is called personal loan part prepayment. Even for making part payment of the personal loan, you have to inform a bank officer by going to the branch of the concerned bank. After your request is submitted, the bank informs you about your updated EMI or new loan tenure.