IIFL Finance Personal Loan Pre-closure

IIFL Finance allows borrowers to pre-close their personal loan before the tenure ends, but certain conditions and charges apply. A pre-closure fee of up to 7% of the outstanding amount would be applicable, depending on how long the loan has been active. Borrowers should check with IIFL Finance to confirm eligibility and applicable charges.

To initiate pre-closure, borrowers must request a quote, pay the outstanding amount, and submit the required documents. Once completed, obtaining a No Dues Certificate (NDC) ensures the loan closure is officially recorded.

Pre-closing a personal loan could help reduce overall interest costs. However, borrowers must meet certain conditions to complete the process:

Pre-Closure Eligibility

IIFL Finance may require borrowers to meet certain conditions, such as completing a minimum tenure, before allowing pre-closure.

Pre-closure Request

A formal pre-closure request must be submitted through IIFL Finance’s customer service channels, branch, or online portal.

Outstanding Loan Amount Payment

The borrower must pay the outstanding principal along with applicable pre-closure charges as per IIFL Finance’s policies.

Identity and Loan Documents

Valid identity proof, such as Aadhaar or PAN, along with loan account details, may be required for verification.

No Dues Certificate (NDC) Collection

After loan closure, borrowers should collect an NDC from IIFL Finance as proof of complete repayment.

Pre-closing a loan could help reduce interest costs and financial burden. Here are the steps to successfully complete the pre-closure process for IIFL Personal Loan:

1. Contact IIFL Finance to check pre-closure eligibility, outstanding balance, and applicable charges

2. Submit a formal pre-closure request through customer service, a branch, or the online portal

3. Gather required documents, such as identity proof and loan account details, for verification

4. Pay the outstanding loan amount along with any applicable pre-closure charges

5. Obtain a No Dues Certificate (NDC) from IIFL Finance as proof of loan closure

Closing a personal loan before the tenure ends could provide financial benefits but also comes with certain costs. Here are the key advantages and disadvantages to evaluate:

Advantages of the Pre-Closure Facility

• Reduces overall interest costs by closing the loan before the scheduled tenure

• Lowers monthly financial obligations by eliminating the need for future EMIs

• Improves creditworthiness by reducing outstanding debt in the credit report

• Frees up loan eligibility, allowing borrowers to apply for new credit if needed

• Provides financial relief by reducing long-term debt commitments

Disadvantages of the Pre-Closure Facility

• May involve pre-closure charges, increasing the total repayment amount

• Reduces liquidity by requiring a lump sum payment for loan closure

• Could impact credit history if not updated correctly in credit records

• Limited savings if pre-closure is done late in the loan tenure

• Some lenders may have restrictions on pre-closure within a specific period

Pre-closing a loan could help reduce debt, but certain steps must be followed for a smooth process. Here are important things to keep in mind:

• Confirm pre-closure eligibility and charges with the lender before initiating the process

• Request a pre-closure quote from IIFL Finance to know the exact amount payable

• Pay all outstanding dues, including any applicable pre-closure fees, to avoid complications

• Collect a No Dues Certificate (NDC) as proof that the loan is fully settled

• Ensure the loan closure is updated in your credit report to avoid discrepancies

• Keep payment receipts and documents safe for future reference

• Contact IIFL Finance customer care at 1860-267-3000 for any queries regarding pre-closure