Freo Personal Loan Preclosure

Foreclosing a Freo Personal Loan lets you repay the loan early, reducing total interest costs and helping you achieve financial freedom sooner. Freo offers flexible repayment options, including pre-closure of the loan before the tenure ends.

Understanding the process, associated charges, and terms involved helps ensure a smooth and informed closure.

Freo does not levy any pre-closure fee if your personal loan was disbursed via an app-to-bank account transfer. Similarly, Freo Personal Loans on Bajaj Markets also come with zero pre-closure charges.

To initiate the pre-closure of your Freo Personal Loan, you need to contact the lending institution (bank or NBFC) that sanctioned your loan and inform them of your intention to foreclose.

For Freo loans approved by RBL Bank, contact the bank directly using the provided channels. The process generally involves paying the current EMI, clearing outstanding dues, and settling any applicable foreclosure charges as per the lender’s policy. Documents that may be required include:

• Loan account details

• Proof of identity (such as Aadhaar card, driving licence, voter ID, or passport)

To proceed with the pre-closure of your Freo Personal Loan, reach out to the lending institution that approved your loan. For loans approved by RBL Bank, use the following contact channels:

• Email: cardservices@rblbank.com

• Phone: 1800 121 9050

• Website: www.rblbank.com
  

Pre-closing a personal loan can offer long-term savings by reducing interest payments and improving your financial flexibility. However, it is also essential to assess the potential drawbacks before proceeding to ensure it aligns with your financial goals. Here are the advantages and disadvantages:

Benefits of Pre-closure:

• Save on Interest

By repaying your loan early, you reduce the total interest payable. This can result in substantial savings over the loan tenure.

• Improve Cash Flow

Once EMIs stop, your disposable income increases. This additional cash can be redirected towards savings, investments, or other financial priorities.

• Strengthen Credit Profile

Pre-payment lowers your debt-to-income ratio and may enhance your credit score. It can also improve your eligibility for future credit on better terms.

• Reduce Financial Stress

Repaying the loan ahead of schedule eliminates monthly EMI obligations, providing peace of mind and greater financial independence.

Disadvantages of Pre-closure:

• Pre-closure Charges

Some lenders impose significant pre-payment or foreclosure fees. These costs may offset the expected savings from early repayment.

• Missed Financial Opportunities

Using a lump sum for pre-payment may result in missed investment opportunities with potentially higher returns than the interest saved.

• Limited Liquidity

Using a lump sum to clear the loan may strain your liquid reserves. This could affect your ability to manage unforeseen expenses or urgent financial needs.

Pre-closing a personal loan can help reduce your overall interest outgo and improve financial flexibility. To ensure a smooth process, keep the following points in mind:

• Understand Pre-closure Terms

Review the lender’s pre-closure terms carefully. Confirm if any penalty applies and ensure all conditions are clearly understood before proceeding.

• Prepare Required Documents

Keep documents such as the No Objection Certificate (NOC) and loan closure letter ready. These confirm that the loan has been repaid in full.

• Check Additional Charges

In addition to pre-closure penalties, verify if any administrative or processing charges are applicable. Include these costs in your financial planning.

• Collect the Loan Closure Certificate

Once the repayment is complete, request a loan closure certificate from the lender. This serves as formal proof of full settlement.

• Monitor Your Credit Score

Closing a personal loan may positively impact your credit score. However, pre-closing too early might offer limited benefits. Evaluate the timing based on your credit objectives.

Every lender on Bajaj Markets has its own pre-closure charges. Refer to the table below for an overview of the applicable pre-closure charges:

Disclaimer: The mentioned charges are subject to change at the lender’s discretion and may change without prior notice.