IndusInd Bank Personal Loan Preclosure

1. The account number is required for the identification of the personal loan account.
2. Identity proof and loan documents will be needed for the verification process.
3. Confirm the pre-closure charges or penalties (if any) before proceeding.
4. Avoid paying cash and prepare cheque or draft for payment of outstanding loan amount.
5. Provide a written request or fill in the pre-closure form to process the forclosure request.
6. Obtain the Loan Closure Certificate from the bank as proof that the loan is fully repaid and the loan account is closed.
7. Cross-check whether the credit report has been updated or not to reflect the closure.

How to Pre-Close IndusInd Bank Personal Loan

The steps to pre-close the IndusInd Bank Personal Loan are mentioned below:

• Gather the required documents for IndusInd Bank personal loan preclosure, such as: 
  a. Loan account number 
  b. Identity proof (Aadhaar, PAN, etc.) 
  c. Loan documents (approval letter, statements)
•  Understand preclosure terms: 
  a. Check if preclosure charges apply 
  b. Arrange payment via cheque or draft (avoid cash)
• Complete the closure process at the bank by submitting the preclosure form and making the payment
• Sign the necessary documents and collect a receipt or payment acknowledgment
• Loan Closure will be confirmed after receiving the Loan Closure Certificate or No-Due Certificate from the bank.
• Check your credit report after a month to ensure the loan is marked "closed" in your credit report.

Things to Ensure When Pre-Closing IndusInd Personal Loan

IndusInd Bank makes the pre-closure process quite hassle-free for personal loan borrowers. That said, there are a few things that you should take into consideration when deciding whether to pre-close your loan:

1. Ensure that you have the required funds available to pay the outstanding loan amount. If repaying the entire loan amount in one go will cause financial difficulties, you can consider making part-payments.
2. You should retain all original documents pertaining to your loan since you may need to furnish these documents to the lender at the time of pre-closing your loan.
3. It is advisable to verify the pre-closure quote provided to you by your lender.
4. Make sure to collect the No Dues Certificate or acknowledgement letter from the lender after you pre-close the loan.
5. If you happen to pre-close your loan very close to the EMI payment date, it is possible that the EMI amount for that month will be debited from your account. In this case, it is best to inform the lender of the same immediately.

If you have a surplus of funds in hand, it is best to pay the penalty and pre-close your loan since you will save on interest payments. Also, pre-closing your loan can increase your eligibility. Thus, if you require funds in the future, you can avail a much higher amount.

That said, if your lender charges you a very low rate of interest on your personal loan, you can opt to invest the surplus funds into financial avenues of your choice and earn substantial returns.

A good credit score can help you secure lower interest rates on loans and credit cards.

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