The preclosure or foreclosure of a personal loan availed from DBS Bank can be done after 12 months from the loan disbursement date. The bank charges a foreclosure penalty of up to 4.5% on the loan principal outstanding along with applicable GST. Before you foreclose a DBS Bank personal loan, you need to pay the foreclosure penalty and clear the outstanding loan amount.
DBS Bank Personal Loan Foreclosure Charges
|12 months to 24 months
||4.50% of the loan principal outstanding plus applicable GST
|25 months to 36 months
||2.50% of the loan principal outstanding plus applicable GST
|More than 36 months
||2.00% of the loan principal outstanding plus applicable GST
Requirements for Preclosure of DBS Bank Personal Loan
Before you approach the bank for preclosure of your personal loan, ensure that you do the following:
- To foreclose the DBS Bank personal loan, you need to clear off the outstanding loan amount.
- Note down your personal loan account number. You will need to provide this information while making a preclosure application.
- All documents related to your personal loan should be kept safely. This includes the loan approval letter, account statement of the loan, etc.
- If you have made the payment of the outstanding loan amount online, you will need to provide the reference number or acknowledgement of the same.
- While visiting the branch office of DBS Bank for loan preclosure, ensure that you carry your photo identity proof.
How to Preclose DBS Bank Personal Loan
As stated above, before you can foreclose your DBS Bank personal loan, you will need to pay the outstanding loan amount. Once you have done that, you can follow the below-given steps to preclose your personal loan:
- Make a visit to the nearest branch of DBS Bank which can be located by using the branch locater on its official website.
- The bank officials will ask you to either fill up a preclosure form or write an application requesting for preclosure.
- If you have paid the outstanding amount online, you will need to furnish the details of the same. If not, you will be asked to make the payment, along with the foreclosure charges, through a cheque or netbanking.
- Sign the documents wherever necessary.
- Once all the formalities are complete, the bank will close the loan and dispatch a certificate of closure to you.
Things to Ensure After Foreclosing a Personal Loan
- After the foreclosure process is complete, remember to collect the No-Dues Certificate (NDC)/Closure Letter/No Objection Certificate (NOC) from the lender. These documents may be needed in the future when you apply for any loans.
- Preserve all the original documents such as insurance papers, letter of guarantor, loan contract, etc., related to the loan.
- When the lender provides you with the final settlement papers, make sure that you go through them carefully to check if you have made any surplus payments.
- If the NOC/NDC have been lost or misplaced, you should get in touch with the bank for them to issue a duplicate copy.
- Some banks may also issue a separate Statement of Account (SoA) which you need to preserve till many years of closing the loan. This document is proof that you have made the repayments in a timely manner.