Individuals who have borrowed personal loans from IndusInd Bank can opt to pre-close their loans before the completion of the loan tenure. IndusInd Bank charges a 4% pre-closure fee, which the borrower will need to pay at the time of pre-closing the loan along with the outstanding loan balance.
Salaried individuals can pre-close their loans after at least 12 EMIs have been repaid, while self-employed individuals can pre-close their loans after the payment of 6 EMIs. Read on for more information about the charges that you will need to pay and the procedure that you will have to follow to pre-close your loan.
IndusInd Personal Loan Pre-Closure/Foreclosure Charges
- Salaried employees will need to pay 4% of the outstanding principal as the pre-closure fee.
- Self-employed individuals will also have to pay a pre-closure charge of 4% of the outstanding principal.
Requirements for IndusInd Bank Personal Loan Pre-Closure
- If you have just availed a personal loan from IndusInd Bank, you may not be eligible to pre-close your loan just yet. Thus, it is necessary to check whether you are eligible to pre-close your loan.
- Check the foreclosure charges and procedure that you will need to follow in advance.
- Make sure to keep the required documents ready since you will need to submit these documents to the lender when pre-closing the loan.
- You can visit the lender’s office or contact the customer service team of IndusInd Bank to know the pre-closure quote. The pre-closure quote will include the penalty that you will need to pay, the outstanding loan balance, and taxes, if any. It is best to do this so you can be sure of how much funds you will require to pre-close your loan.
- Once you know the quote, you can prepare a cheque for the same account. It is best to avoid paying this sum in cash.
How to Pre-Close IndusInd Bank Personal Loan
- Visit an IndusInd Bank branch with the required documents. You may have to carry a proof of identity, loan account statement, loan approval letter, and your personal loan account number. Any other documents that may be requested by the lender will have to be furnished as well.
- Your lender may give you a pre-closure form or may require you to write a letter for the same purpose.
- You will need to pay the outstanding loan balance along with the pre-closure penalty to the lender.
- Once this is done, the lender may give you a No Dues Certificate or an acknowledgement letter.
- Post this, the lender will close your loan account.
Things to Ensure When Pre-Closing InduaInd 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:
- 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.
- 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.
- It is advisable to verify the pre-closure quote provided to you by your lender.
- Make sure to collect the No Dues Certificate or acknowledgement letter from the lender after you pre-close the loan.
- 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.