mPokket Personal Loan Preclosure

Preclosing your mPokket personal loan allows you to repay the outstanding balance before the scheduled end of the loan tenure. This proactive approach can lead to significant interest savings and provide financial freedom sooner than anticipated. However, it's essential to understand the associated terms, charges, and procedures to make an informed decision.

Before initiating the preclosure process, ensure you meet the following criteria:

• Minimum Tenure Completion

mPokket may require borrowers to complete a minimum tenure before allowing preclosure. It's essential to review your personal loan agreement to determine if such a condition applies

• No Outstanding Dues

All pending dues, including EMIs, late payment fees, or penalties, must be cleared before proceeding with preclosure

• Formal Request

Submit a formal request to mPokket expressing your intention to preclose the personal loan

To preclose your mPokket personal loan, follow these steps:

1. Review Your Loan Agreement

Understand the terms related to preclosure, including any applicable charges and conditions

2. Contact mPokket Customer Support

Reach out to mPokket's customer service to inform them of your intent to preclose the loan. Also, cross check the exact outstanding amount and applicable charges before applying for a foreclosure.

3. Obtain a Preclosure Statement

Request a statement detailing the outstanding principal, accrued interest, and any preclosure charges

4. Make the Payment

Pay the total amount specified in the preclosure statement through the accepted payment methods

5. Confirm Loan Closure

After the payment is processed, ensure that mPokket provides confirmation of loan closure

Here are some benefits which you can enjoy by applying for a mPokket Personal Loan preclosure:

• Interest Savings

 By repaying the loan early, you can save on the interest that would have accrued over the remaining tenure

• Improved Credit Score

Successfully closing a loan ahead of schedule can positively impact your credit score, reflecting financial responsibility

• Debt-free Sooner

Eliminating debt obligations ahead of schedule provides financial freedom and peace of mind

• Enhanced Loan Eligibility

Clearing existing debts can improve your eligibility for future loans, as lenders often prefer applicants with lower existing liabilities

Before you opt for a mPokket loan foreclosure, here are some probable disadvantages that you should consider to make a wise financial decision:

• Preclosure Charges

The 3% prepayment charge on the remaining loan balance can offset some of the interest savings

• Impact on Liquidity

Allocating a lump sum for preclosure might affect your immediate financial liquidity, potentially limiting funds for other needs or investments

• Opportunity Cost

The funds used for preclosure could have been invested elsewhere to earn returns, possibly exceeding the interest saved from early loan repayment

• Potential Credit Score Impact

While paying off debt can improve your credit score, closing a loan account may temporarily reduce your credit mix, which could slightly impact your score

Here are some things to keep in mind when applying for a foreclosure to ensure a smooth process:

• Calculate Savings

Assess whether the interest savings outweigh the preclosure charges and any potential returns from alternative investments

• Check the Process

Ensure you understand the preclosure process thoroughly to avoid any delays 

• Receive the Documents

After preclosure, secure all necessary documents, such as a loan closure confirmation, to confirm the loan has been fully repaid

• Monitor Credit Report

Check your credit report post-preclosure to ensure the loan closure is accurately reflected, maintaining your credit health

• Maintain Emergency Funds

Avoid depleting your emergency savings for preclosure; ensure you have sufficient funds to cover unforeseen expenses

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

• Phone No: 033- 6645 2400 (Monday to Saturday - 9 am to 7 pm)

• E-mail ID: support@mpokket.com

• Address: PS Srijan Corporate Park, Tower 1, 12th Floor, Unit No. - 1204, 2, EP & GP, Sector V, Bidhannagar, Kolkata, West Bengal 700091