Personal Loan Preclosure Calculator

Many borrowers avail personal loans to get through a financial crisis. Personal loans come with a fixed payment plan. However, many borrowers do not wish to continue paying high interest rate for such long tenures. If a borrower wants to pay the loan in full after few months but before the end of the loan tenure, it is called loan preclosure. Prepaying your personal loan is very beneficial and economical. Listed below are few of the benefits of prepaying your personal loan.

Benefits of paying off your loan in advance

It boosts your credit score.
It makes you eligible to avail other loans if needed.
It helps you save up a lot on the interest paid as you will be paying back the principal amount mostly and the interest rate you land up paying otherwise reduces.
It reduces your monthly financial obligation as it eliminates the burden of paying EMIs on a monthly basis.

How do you know the preclosure amount?

Few decades ago customers used to walk into a bank to find out the preclosure amount that needs to be paid to close the personal loan account but these days one can calculate the preclosure amount online using the preclosure calculator.

What is a preclosure calculator?

A preclosure calculator is a tool helps you calculate the total sum amount that needs to be paid to close a personal loan account. This calculator is similar to the calculator used to calculate EMIs a borrower needs to pay.

How to use the preclosure calculator?

Visit the bank’s website or use third-party websites that has a preclosure calculator.
Key in the details asked in the prepayment calculator. The calculator usually asks for few loan details like the tenure of the loan, interest rate, number of EMIs paid already, preclosure charges if any, total loan amount, foreclosure month, and if any part payment was made before.
Once you enter these details the calculator considers several factors and informs you the preclosure amount.

Loan repayment calculator on BankBazaar Website