How to Pre-Close Your Personal Loan?

Overview

Closing your personal loan account must be among your top-priority goals. You can close the account by either repaying the whole amount as per the tenure of the loan, or you can even close the account prematurely i.e. before the maturity date.

Types of Personal Loan Closures

There are different repayment methods made available to customers for personal loans. We, at SMFG India Credit, provide an option to complete the repayment before the term of the loan agreement ends. A personal loan account can be closed through any of the below processes:

1. Pre-closure

If you clear the loan amount before the end of tenure, then you can save a lot on EMIs as per the personal loan EMI calculator. Pre-closing your loan also gives a boost to your CIBIL score. At SMFG India Credit, if you choose this option, foreclosure charges may be applicable as per our current policy depending on the number of EMIs you have already paid. If sufficient number of EMIs have already been paid, then you may not be required to pay these charges. To know more, please check our page on personal loan closure or contact us.

2. Regular Closure

In Regular Closure, you can pay off the EMIs at the agreed-upon dates every month and close the loan at the end of the tenure that has been mentioned in the loan agreement. The entire process takes place without any additional terms and conditions being evoked.

3. Loan Extension

A loan extension can be defined as an agreement between the lender, and the borrower that will allow the borrower to receive an extension for repayment. However, do note that this is an option may not be offered by most lenders except under special circumstances. If you would like to know more, please get in touch with us.

4. Top-up Loan

At SMFG India Credit, we value our customers and try our best to ensure that you get the best possible service. Hence, for certain select customers, we offer Top-up Loans which will allow you to borrow a certain amount of funds over the existing loan amount. To find out if you are eligible, please get in touch with us today.

Requirements for Personal Loan Closure

If you would like pre-close your personal loan account, you would need the below documents:

• Documents related to the loan.
• Identity and Address Proof such as Aadhar Card, Voter ID, Passport, etc.
• Statements of loans that are displaying the EMIs that have been paid to date.
• Demand draft or Cheque for the outstanding balance.

How to Close your Personal Loan Account?

• Inform us once you have repaid the entire loan amount.
• Before closing your loan account, we will check your identity proof and loan account number, so carry it with you along with a cheque.
• Your loan account will get closed automatically, and you will receive a NOC from SMFG India Credit that will act as the testimony of closure.