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Learn how to preclose your Branch Personal Loan, applicable charges, and the loan closure process.
Last updated on: Aug 21, 2026
Branch Personal Loan preclosure allows you to repay your outstanding loan amount before the scheduled tenure ends. Depending on the lender's policy and your loan agreement, early closure may help reduce the total interest payable over the remaining tenure.
Before proceeding with foreclosure, it is important to check the applicable terms, outstanding dues, eligibility conditions, and any charges that may apply. You can use the app or contact customer support for guidance on loan closure requests.
Branch loan preclosure, also known as foreclosure, refers to repayment of the entire outstanding loan balance before the original loan tenure ends. Once the remaining principal, accrued interest, and applicable charges are paid, the lender closes the loan account and no further EMIs are due.
Preclosure is different from part-payment. In a preclosure or foreclosure, the loan is fully closed. In a part-payment transaction, only a portion of the outstanding amount is repaid, while the loan continues with a reduced balance. You can consider preclosure when you receive surplus funds and wish to reduce the debt obligations sooner.
Below is an overview of the charges associated with the loan.
| Particulars | Details |
|---|---|
Up to 6% of outstanding principal + GST. The fees will be calculated on a reducing balance basis |
Disclaimer: The mentioned values are subject to change at the lender’s discretion.
Here are the steps:
Open the Branch app and review your current loan details.
Check your outstanding balance and repayment status.
Contact Branch customer support if a foreclosure request is required.
Request a foreclosure or loan closure statement showing the exact payable amount.
Verify whether any charges or conditions apply.
Pay the full foreclosure amount through the approved repayment method.
Keep the payment acknowledgement for your records.
Confirm that the loan account status has been updated to closed.
Request a loan closure letter or NOC after successful closure.
Part-payment and prepayment are repayment options that allow you to reduce your loan burden before the scheduled tenure ends. Unlike foreclosure, these options do not necessarily close the loan account.
Key points to remember:
Part-payment reduces a portion of the outstanding principal.
Early repayment may reduce future interest costs.
The remaining loan may continue with either a revised EMI or revised tenure.
Eligibility and conditions may vary depending on the loan agreement.
Here are points to consider:
Confirm the exact foreclosure amount and validity period.
Review the loan agreement for any foreclosure conditions.
Check whether a minimum repayment period or lock-in applies.
Compare potential interest savings against applicable charges.
Ensure all pending dues, fees, or penalties are cleared.
Obtain written confirmation once the loan is closed.
Repaying your loan before the scheduled tenure may offer several financial advantages:
Potential savings on future interest costs.
Faster debt repayment and improved financial flexibility.
Reduced monthly repayment obligations.
Better management of future financial commitments.
Loan account closure once all dues are cleared.
Reviewer
To preclose your Branch loan, request the foreclosure amount, pay the entire outstanding balance, and obtain confirmation that the loan account has been closed. Keep the closure acknowledgement for future reference.
Branch may charge up to 6% of the outstanding principal amount plus applicable GST for loan foreclosure. The foreclosure fee is typically calculated on a reducing balance basis, meaning it is applied to the outstanding principal remaining at the time of closure rather than the original loan amount.
Part-payment availability depends on the lender's policy and loan terms. If permitted, a part-payment can reduce the outstanding principal without fully closing the loan account.
Early repayment may reduce the total interest paid because the outstanding principal is reduced sooner. The exact savings depend on the repayment timing and loan structure.
Yes, borrowers may be able to foreclose a loan before the original tenure ends, subject to the loan agreement and any applicable lender conditions.
A properly closed loan is generally recorded as closed in your credit history. The impact on your credit profile may vary based on your overall borrowing and repayment behaviour.
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