Taking a personal loan can provide financial flexibility, but repaying it ahead of schedule—known as pre-closure—could help you save on interest. If you have surplus funds and wish to close your InCred Personal Loan before its full tenure, there are certain conditions, charges, and processes to be aware of.
For instance, InCred allows pre-closure only after a minimum of 6 EMIs have been paid. Additionally, a pre-closure charge applies, which means closing the loan early is not always cost-free. Before making a decision, it is crucial to evaluate whether the benefits of pre-closure outweigh the costs.
Let’s explore everything you need to know about preclosing an InCred Personal Loan, from charges and eligibility requirements to the exact steps involved.
Before opting for an InCred Personal Loan pre-closure, it’s essential to understand the applicable charges. These fees ensure that the lender recovers some of the interest income lost due to early repayment. Usually, a charge of up to 5% of the outstanding principal (plus GST) is levied when you foreclose a loan.
Additional Points to Consider:
Pre-closure is not allowed before 6 months: If you’ve recently taken a loan, you must wait until at least 6 months since disbursement are completed
Charges are applied to the outstanding amount: The 5% charge is calculated on the remaining loan principal, not the total loan amount
Taxes are additional: GST applies on the pre-closure charge, which increases the overall cost
If you are considering an InCred loan preclosure, calculating these charges in advance will help you decide whether the early repayment is financially beneficial for you.
To preclose your InCred Personal Loan smoothly, you must meet certain eligibility criteria and prepare the necessary documents.
Eligibility Conditions for Preclosure
Minimum EMI Payments: You must have paid at least 6 EMIs before requesting pre-closure
No Outstanding Dues: All pending EMIs, penalties, or overdue charges (if any) must be cleared before the pre-closure is processed
Full Repayment of Outstanding Principal: The pre-closure amount includes the unpaid principal, interest accrued until the closure date, and applicable pre-closure fees
Payment through Approved Methods: InCred typically accepts pre-closure payments via NEFT, RTGS, or cheque at its designated branches or online banking channels
Request Submission: You must formally request pre-closure by contacting InCred customer care or visiting a branch
If you meet the above conditions, follow these steps to preclose your loan:
Step 1: Check Your Loan Agreement
Go through your loan sanction letter or agreement to understand the exact pre-closure terms, charges, and eligibility conditions.
Step 2: Contact InCred Customer Care
Call InCred customer support at 1800-102-2192 or email care@incred.com to request a loan statement.
Step 3: Obtain and Review the Pre-closure Statement
InCred will issue a pre-closure statement with the total amount due, including fees and taxes. Verify all the details, including final repayment amount and last EMI date.
Step 4: Make the Pre-closure Payment
Transfer the amount via NEFT, RTGS, or a direct bank deposit to the specified InCred loan account. Ensure that the payment is made well before the due date to avoid any additional charges.
Step 5: Collect the No Objection Certificate (NOC)
After successful pre-closure, InCred will provide a NOC confirming that your personal loan has been fully repaid. Keep this document safe, as it is proof of loan closure.
Step 6: Monitor Your Credit Report
A loan pre-closure should reflect as a ‘Closed’ loan on your credit report within 30-45 days. If it doesn’t update, contact InCred to ensure proper reporting to credit bureaus like TransUnion CIBIL or Experian.
While preclosing a loan may seem like a great idea, it’s important to weigh both the benefits and drawbacks before making a decision.
Advantages of Preclosure
Saves on Interest Costs: By closing your loan early, you eliminate future interest payments, reducing your overall loan cost
Reduces Debt Burden: Becoming debt-free sooner gives you financial flexibility and helps lower your debt-to-income (DTI) ratio
Improves Credit Score: Successfully preclosing a loan without defaults reflects positively on your credit history, improving your credit score
Disadvantages of Preclosure
Pre-closure Charges Apply: The 5% charge on the outstanding loan can sometimes negate the savings from early repayment
Impact on Liquidity: Using a lump sum for pre-closure may affect your savings or limit your ability to invest elsewhere
No Future Benefits from Loan Tenure: Keeping a loan running and paying EMIs regularly helps build credit history—pre-closure eliminates this benefit
Before closing your InCred Personal Loan, consider the following points:
Compare Pre-closure Cost vs. Interest Savings: Use a loan pre-closure calculator to check whether preclosing is financially beneficial. If the pre-closure charges are high, it might be better to continue paying EMIs.
Confirm the Total Amount Before Paying: Ensure that you have the final closure amount, including pre-closure fees and pending dues, to avoid delays or penalties
Ensure Smooth Documentation: Collect your No Objection Certificate (NOC), loan closure statement, and final payment receipt for your records
Monitor Credit Report Update: Check your credit reports after 30-45 days to ensure the loan is correctly marked as closed
Reach Out for Assistance: If you have any questions or concerns, contact InCred Customer Care by using any of the following details:
Phone Number: 1800-102-2192
WhatsApp Number: +918826272192
E-mail ID: care@incred.com
Address: HDIL, Kale Donia Building, Unit No. 3B-02 and 203 - B wing, Sahar Rd, opposite mart, Sambhaji Nagar, Andheri East, Mumbai 400069
