Loan Foreclosure Benefits: Get rid of the hassle of premature loan EMI

Loan Foreclosure Benefits: Almost everyone in India takes a loan from a bank or any other institution to complete many of their works, after which they have to pay the money every month in EMI to the bank or the institution from which they have taken the loan. Happens. These loans are of different types like – Personal Loan, Car Loan, Home Loan etc.

All these loans are given for different periods in which the period of personal loan and car loan is less but the period of home loan is the longest in which people sometimes have to pay EMI for 15 to 20 years. falls. In such a situation, many people get worried while paying EMI for a long time.

But now you do not need to worry in such or any other situation because now you can take the help of Loan Foreclosure Benefits. Loan Foreclosure is a method of banking in which you can get any of your loans closed before its maturity period. So let us know about the loan foreclosure process along with loan foreclosure benefits.

What is the process of Loan Foreclosure?

If you want to close any of your loans before time, then you will have to pay some EMI of that loan first, only then you will be able to use this facility. Now if you want to use this facility, then we have given its process below.

• First of all you have to go to the bank from where you have taken the loan.
• After going to the bank, you will have to take the Loan Foreclosure application form from there.
• Fill the Loan Foreclosure application form correctly and submit it to the bank.
• Along with the application form, you will also have to attach your PAN card, loan account number and copy of your address.
• Then after your application is accepted, you will get the document from the bank for the remaining amount of your loan. In which there will be data about how much amount you have to pay to the bank now.

After which you can pay the remaining amount to the bank through NEFT/RTGS. After paying the amount, the EMI of your loan will be stopped, in this way you can be free from the hassle of heavy EMIs of your loan.

How much will be charged on Loan Foreclosure?

Many of you might be wondering right now that if we use the Loan Foreclosure facility, then how much will we have to pay for it because it has often been seen that there is some charge in every work of the bank. According to RBI rules, if your loan is on floating interest, then you will not have to pay any charge for premature closure of the loan.

But if the loan is on fixed interest then you may have to pay charges to the bank at the time of loan foreclosure. Many times banks do not take any charge from the consumer on personal loan and the foreclosure charge of each bank is different. You can also read about the charges for Loan Foreclosure in the loan agreement that you get while taking the loan.

Benefits of Loan Foreclosure

If you are thinking of getting Loan Foreclosure done, then you can read about its benefits below.

• The biggest advantage of Loan Foreclosure is that you will get rid of the loan EMI that you pay every month.
• This also improves your overall credit score, which makes it easier for you to take any loan in future.
• You can avoid the interest that you are currently paying on the loan to the bank.

Apart from this, there are many benefits of Loan Foreclosure like – Now there will be no pressure on you to pay EMI to the bank etc.

Be sure to keep these things in mind

After getting loan foreclosure done, keep the following things in mind.

• Must take loan foreclosure certificate from the bank.
• Collect your submitted documents from the bank within 10 to 15 days of loan closure.
• Be sure to verify all your documents to see if any is in bad condition.

Whenever you use the Loan Foreclosure facility, you must pay attention to these things. We hope you liked this article so please share it with your friends.

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Frequently Asked Questions – Loan Foreclosure Benefits