Moneyview Personal Loan Preclosure Process and Charges

The applicable Moneyview Personal Loan preclosure charges are mentioned in your loan agreement. Pre-closure terms may vary, so check for any charges before proceeding. Refer to your loan documents or contact customer care to confirm the exact details.

To preclose your moneyview personal loan, follow these steps:

• Check Eligibility: Ensure you have met the minimum EMI payment requirements based on your loan tenure

• Contact Customer Support: Reach out to moneyview's customer support to inform them of your intent to preclose the loan and to obtain the exact outstanding amount

• Obtain Preclosure Statement: Request a preclosure statement detailing the outstanding principal and any applicable interest up to the closure date

• Make the Payment: Pay the total amount specified in the preclosure statement through the accepted payment methods

• Obtain No Objection Certificate (NOC): After the payment is processed, request an NOC from moneyview as proof that the loan has been fully repaid and closed

If you wish to close your loan through the moneyview app, you can follow the instructions provided below:

• If you meet the eligibility criteria, you can close your loan early through the app

• The ‘Foreclose Loan’ option will become visible in the app once you qualify

• Loan foreclosure is permitted only after the 8th of each month

Here are some pros and cons of foreclosing a Moneyview Personal Loan that you should consider before opting for this facility:

Advantages:

• Interest Savings

By preclosing the loan, you can save on future interest payments, reducing the overall cost of the loan

• Debt-free Sooner

Eliminating the debt obligation ahead of schedule provides financial freedom and peace of mind

• Improved Credit Score

Successfully closing a loan can have a positive impact on your credit score, reflecting responsible financial behaviour

Disadvantages:

• Liquidity Impact

Utilising a large sum of money to preclose the loan may affect your liquidity and financial flexibility

• Opportunity Cost

The funds used for preclosure could have been invested elsewhere to earn returns, potentially leading to a loss of potential income

When considering preclosure, it is important to take certain precautions to avoid unnecessary financial or procedural complications. Evaluating these factors beforehand will help ensure a smooth and beneficial loan closure experience.

Calculate Net Savings

Before pre-closing a personal loan, assess whether the interest savings outweigh the costs. Preclosure reduces interest expenses, but it is important to compare this with potential investment returns you might forgo by using the funds for preclosure. If the preclosure charges are high or if the funds could generate better returns elsewhere, keeping the loan active while making additional part-payments may be a better strategy.

Understand the Process

Understanding the exact preclosure procedure is crucial to avoid any delays or misunderstandings. Each lender has specific requirements regarding preclosure timelines, eligibility conditions, and payment methods. Moneyview, for example, allows preclosure only after a minimum number of EMIs have been paid and requires the request to be submitted through the app or customer service. Missing any of these steps may result in delays or additional charges.

Check for Hidden Charges

While Moneyview does not levy preclosure charges, some lenders may include hidden fees such as foreclosure penalties, processing fees, or additional interest on the outstanding balance. Carefully reviewing the loan agreement and obtaining a preclosure statement from the lender will help identify any unexpected costs.

Ensure Full Payment is Made

To successfully close a loan, the entire outstanding balance, including any accrued interest until the closure date, must be cleared. Partial payments will not be considered a preclosure, and failure to pay the exact amount specified in the preclosure statement may lead to continued interest accumulation. Always verify the final amount and confirm the transaction with the lender.

Obtain Documentation

After preclosure, securing all necessary documents is essential to prevent future disputes. Key documents include the NOC, which serves as proof that the loan has been fully repaid, and a loan closure statement confirming a zero outstanding balance. Additionally, borrowers should monitor their credit reports to ensure that the loan is correctly marked as ‘Closed’.

Verify Credit Score Update

Loan preclosure should reflect accurately in credit reports maintained by agencies like CIBIL and Experian. It typically takes 30 to 45 days for the update to appear. If the status is not updated within this period, borrowers should raise a dispute with the lender and request them to report the closure to the credit bureaus.

Plan for Future Credit Needs

Preclosing a loan may impact future loan eligibility, especially if it reduces the borrower’s credit history length. If a borrower plans to take another personal loan or a credit card soon, maintaining an active credit account with regular EMI payments might be more beneficial than closing it early. Evaluating the long-term financial impact before making the preclosure decision is recommended.

Check Alternative Repayment Options

Instead of preclosing a loan, borrowers can consider making part-payments to reduce the principal balance. This approach lowers interest costs while keeping funds available for emergencies or investments. Restructuring EMIs to pay off the loan faster can also be a viable option if preclosure is not feasible.

NDC (No Dues Certificate)

Once you complete your loan preclosure, remember to request a No Dues Certificate (NDC)—also known as a No Objection Certificate (NOC). This official document confirms that you have fully repaid the loan and have zero outstanding balance. Keeping this on file is essential to safeguard your credit history, ensure your CIBIL score updates accurately, and prevent any future billing disputes.

Time the Preclosure Wisely

Choosing the right time for preclosure can enhance savings. For example, preclosing a loan early in the tenure, when interest charges are highest, leads to greater savings. On the other hand, if only a few EMIs are left, preclosure might not provide significant financial benefits. Evaluating the timing based on the loan amortisation schedule can help maximise savings.

For further queries or assistance, you can contact Moneyview's customer care at:

• Phone: 080 4569 2002
  

• E-mail ID: payments@moneyview.in (for loan repayment-related queries only)