Want to close the personal loan ahead of time, know how it affects the credit score



<p style="text-align: justify;"Taking a personal loan is considered to be the best option when there is a sudden need of money. Pre-closure and part payment or partial payment information must be taken while taking a personal loan. Today we will tell you about these two. Actually personal loan can be closed in three ways.

regular closure

  • In this the customer pays EMI every month. EMI stops when the full payment is done within the stipulated time.
  • After paying the last loan installment one should approach the bank for loan closure.
  • for this from customer care Can talk too. Apart from this, conversation can also be done through mail.

Pre Closure

  • When a person repays the loan before the end of the loan tenure, it is called pre-closure.
  • Some institutions charge a fee for pre-closure of the loan.
  • >Banks have different lock-in periods before which one can close the loan.
  • Banks charge pre-closure charges to cover the loss on the interest amount.
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  • Banks have different rules regarding this.
  • Many banks do not even charge any pre-closure charges.
  • If you want to do pre-closure Then you should talk to the bank.

Partial Payment

  • If you want the loan to be repaid at the earliest, then partial repayment can be done in between.
  • There are two advantages of partial payment, your EMI will decrease or else the loan The period will decrease. Which one to choose is up to you.
  • Another feature is that partial payments can be made multiple times in between.

what affects credit score

  • Keep in mind that banks also levy a charge for partial payment or prepayment closure, so the net profit in interest is much more than that charge.
  • Experts say that the immediate effect of pre-closure The effect is not visible, but it has a negative impact on the credit score in the long run.
  • This option can be chosen if your credit score is already very good.
  • if If your credit score is improving then pre closure should be avoided in that condition.

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