Axis Bank Preclosure Facility on Personal Loan

You may want financial assistance at some point in order to complete one or more activities. In that case, a quick and simple loan like the Axis Bank Personal Loan might be an excellent option. This loan is extremely simple to obtain because it requires minimal documentation and is approved and disbursed instantly. Furthermore, the loan proceeds are not restricted in any way. Apart from that, it is difficult to deny that a Personal Debt is a debt that must be repaid with interest. However, if you have sufficient financial resources and intend to return the loan in whole or in part during the term, the entire process is known as Preclosure. Furthermore, it is critical to recognise the significance of the impact that a loan preclosure might cause on your CIBIL score.

Preclosure Types

If you thought Axis Personal Interest Rate was a good option while applying for a loan but are now ready to choose personal loan preclosure, you have two choices: pay back the loan partially or totally. In either case, you should have the necessary financial resources. Both strategies are briefly detailed below: 

Payment in Instalments

Simply go to your nearest Axis Bank and request a partial payment on your Personal Loan. Simply submit a prepayment request, and it will be addressed as quickly as possible. The bank can then be paid in cash, check, or demand draught. One of the most appealing benefits of this simple and straightforward prepayment method is that Axis Bank does not penalise partial repayment of Personal Loans.

Complete Payment

If you want to pay off all of your debts at once, you must first pay off any outstanding bills, 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 file a Personal Loan foreclosure request letter. You can simply pay the unpaid principal amount in cash, check, or demand draught after the bank has finalised your foreclosure request. Axis Bank also does not levy penalties for repaying Personal Loans in full.

Charges On Foreclosure

Make sure that all of your past debts are paid in full before you decide to foreclose on your personal loan. If you get a foreclosure statement from your local Axis Bank, you can pay off your due payments. You must file a foreclosure request with Axis Bank once you have paid off all due payments, which will initiate the foreclosure process. Even though there are no penalties, Axis Bank levies several foreclosure charges if you want to foreclose your loan account. Here are some instances of bank foreclosure fees:

  • 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.

Choosing a pre-closure or foreclosure on your personal loan may have an impact on your total creditworthiness as well as your credit score. As a result, it is strongly encouraged that you create a CIBIL score login in order to keep a close eye on your credit score as well as report to ensure that you are fully aware of all the factors that may affect your credit score.

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