You may require financial help to fulfil one or more responsibilities at some point. In that scenario, a quick and easy loan like the Axis Bank Personal Loan may be a viable alternative. This loan is extremely simple to obtain because it involves minimum documentation, rapid approval, and disbursement. Furthermore, there are no restrictions on how you may spend the issued loan amount. Aside from that, it is impossible to deny that even a Personal Loan is a loan that accrues interest and must be repaid. However, if you have sufficient financial means and intend to repay the loan in part or in whole within the term, the entire procedure is referred to as Preclosure. Moreover, it is important to understand that a loan preclosure might as well affect your CIBIL Score.
Types of Preclosure in Axis Bank
If you felt Axis Personal Interest Rate was a reasonable option when applying for a loan but are now prepared to choose for preclosure of your personal loan, you have two options: pay back the loan in part or pay back the loan in full. In either event, you should have the financial means to do so. Both strategies are outlined briefly below:
1. Payment in Parts
Simply go to your local Axis Bank and express your wish to make a partial payment on your Personal Loan. All you have to do is submit a prepayment request, which will be processed promptly. Following that, you can pay the bank in cash, check, or demand draught. Axis Bank does not penalise partial repayment of Personal Loans, which is one of the most appealing aspects of this simple and straightforward prepayment approach.
2. Complete Payment Method
If you want to pay off your debts all at once, you must first pay off any outstanding dues, such as Delayed EMIs, Cheque Bounce Charges, Cheque/Instrument Swap Charges, Interest on Defaulted EMIs, and so on. Following that, you must go to your local Axis Bank and provide a letter of request for foreclosure of your Personal Loan. After the bank has processed your foreclosure request, you can simply pay the outstanding principal amount to the bank in cash, check, or demand draft. Axis Bank also does not charge a penalty for paying off Personal Loans in full.
These are the two types of ways by which you can prepay your loan in Axis bank.
Foreclosure Charges
Before you decide to foreclose on your personal loan, be sure that all of your existing debts are paid in full. You can pay off your outstanding debts by receiving a foreclosure statement from your local Axis Bank. After you have paid off all outstanding bills, you must file a foreclosure request with Axis Bank, which will begin the foreclosure process. Though Axis Bank does not impose any penalties, there are various foreclosure charges levied by Axis Bank if you desire to foreclose your loan account.
Below mentioned are some foreclosure charges charged by the bank:
- 5% if you wish to foreclose your loan within the first year.
- 4% if foreclosure is done in the second year
- 3% foreclosure charges if done in the third year
- 2% foreclosure charges if the prepayment is done after the third year.
Opting for a pre closure or foreclosure on your personal loan might have an impact on your overall creditworthiness as it can have an impact on your credit score. Therefore, it is advisable to check your CIBIL score on WhatsApp to keep a regular check on your credit score as well as report to make sure that you are fully aware about all the aspects that can impact your credit score.
