5 Important Factors to Consider before Axis Bank Personal Loan Preclosure

Life is unpredictable and so is your need for an emergency fund. There may be several instances when you may need financial assistance to fulfil unforeseen obligations. In such times, getting a quick personal loan from a reputed lender such as Axis Bank is a great opportunity. The axis bank personal loan can be availed with much ease. You do not have to produce a host of documents or go through a tedious process to get your loan approved. Additionally, the personal loan gets approved and disbursed within just a few days. The most notable factor about getting an Axis bank personal loan is that it can be used in any way you wish. 

While the Axis Bank personal loan comes as a great offering, it is still a debt that adds to your financial liability. The loan has to be paid with an interest cost and can majorly impact your financial decisions. This makes it extremely important to repay your Axis Bank personal loan effectively. To plan and manage your finances efficiently while maintaining the required discipline, you as a borrower will most likely wish to pay off your loan at the earliest. Paying your debt before the end of your loan tenure is known as preclosure. Read on to know more about preclosing your personal loan from Axis bank.

Factors to Consider before Preclosing your Axis Bank Personal Loan

Here are some essential factors that you must necessarily evaluate before preclosing your personal loan.

• Consider the Preclosure Cost – 

There are several costs associated with preclosing your personal loan. From penalty interest charges, processing charges and more, the costs are many. If the preclosure costs you more than you save with closing your debit account, the preclosure is not beneficial.

• Evaluate the Impact on the Credit Score – 

Efficiently servicing a loan is a great way of improving your credit score. The credit report reflects your consistency in making repayments on time and thereby boost your score. If you are focused on building your credit score, you must reconsider foreclosing your Axis Bank personal loan.

• Check the Loan Timeline – 

If you are nearing the closure of your loan as per the tenure, it is best to steer away from preclosure. You have already serviced your loan for a long period and making this decision will not save you much. However, if you have a considerable amount of time before the end of the tenure, you may opt to preclose the loan account.

• Compare Investment Returns – 

It is essential to compare the rate of interest paid on your personal loan with the investment returns that you could reap. Evaluate whether you can use the available funds to reap returns from lucrative investment options. Earning better returns will only help you better manage your debt accounts.

Axis Bank Personal Loan – Preclosure

If you have evaluated all the relating factors and have decided to go with preclosing your personal loan, you can do so by following the simple steps. The loan may be preclosed in two ways, part payment or full payment.

• Part Payment - 

Once you have decided to preclose your Axis Bank personal loan by making part payments, you need to convey your wish at the bank centre. The bank authorities will ask you to submit your request through an application. Once your request is submitted, you may make the payment through cash or cheque.

• Full Payment - 

Axis Bank Personal Loan can be closed by making full payment. Again, you must visit the Axis Bank loan centre and offer a letter requesting the preclosure of your loan. The bank authorities will process your request. Once done, you have to clear the outstanding amount by making your payment in cash or with a cheque. You can also use the demand draft facility offered by the bank.

Now that you have all the required understanding about making the prepayment on your loan, we hope that the above-listed information effectively helps you in your consideration. Whether you decide to preclose your personal loan or not, ensure that your decision is in tandem with your financial plans. The changes in rules and rates are subject to the discretion of Axis Bank and you must contact the bank to stay updated with the same. Learn more about personal loan offers on Bajaj Markets.