IDBI Bank offers you the option of closing your personal loan account before the end of the original tenure. On choosing this option, the bank will inform you regarding your outstanding loan balance. If you want to foreclose your personal loan, simply call up the bank on their customer care number and ask them if you are eligible to do so.
The bank will take you through the process step-by-step. However, we’ve listed a few things that could help make this process a seamless and smooth one. Read on to find out how you can close your IDBI loan ahead of time and save money.
|No. Of Months From Loan Disbursement||Pre-Closure Charges|
|Less than 12 months||2% of the outstanding balance|
|Between 12 to 24 months||1% of the outstanding balance|
|After 24 months||No charge|
To close your account, you have to physically go down to one of the bank’s branches. Locating a branch office close to you is a simple process. The steps to find the nearest one are given below:
IDBI Bank makes sure that the process of pre-closing your loan account is simple and quick. As long as you have the money to repay the entire balance in one shot, you can go for it. but make sure you’re not using up all your savings in doing so. Also, if you wait for at least 2 years, you can close it without paying any prepayment fee.
Prepayment, foreclosure, or pre-closure is a facility that many banks provide to customers who want to terminate their personal loans ahead of schedule. When you apply for a loan, you have to choose your loan tenure as well.
At some point during the tenure, if you find yourself with extra cash, you can make use of this facility to terminate your loan before the end of the original tenure. This way, you will be able to save money since you won’t have to pay interest for the remaining loan duration.
Loan foreclosure is a great option, but in some cases, the bank will charge you a fee for using this facility. For example, if the fee is 5% on the outstanding balance of Rs.5 lakh, you will have to pay Rs.25,000 to pre-terminate the loan.
Calculate how much you will save on interest if you terminate the loan now. See if the savings are greater than the foreclosure cost. Terminate your loan early only if the benefits outweigh the costs.
IDBI Bank Ltd. Is a full-service universal bank that caters to the financial needs of lakhs of Indians in both the personal banking and corporate banking sectors. The bank has been offering its services for more than 50 years and is one of the popular banks in India. With an aim to offer the best and most relevant services to its customers, the bank offers a vast network of branches, ATMs, and digital services.
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