Learn about the Piramal Finance Personal Loan pre-closure charges.
If you are considering foreclosing your Piramal Finance Personal Loan, it is important to understand the charges and terms involved. Review the applicable charges, documentation requirements, and any restrictions to ensure a smooth and cost-effective closure.
When you foreclose your loan, the following Piramal Finance Personal Loan pre-closure charges apply:
| Particulars | Details |
|---|---|
| Pre-closure Charges |
5% of the outstanding amount + GST |
Disclaimer: The details mentioned above are subject to change at the lender’s discretion.
Before pre-closing your Piramal Finance Personal Loan, certain requirements must be fulfilled to ensure a smooth process:
The loan must remain active for a specified period from the date of the first EMI. A pre-closure request can only be made once this period has elapsed.
All pending EMIs, interest, and applicable charges must be cleared in full before initiating the pre-closure process.
A written application or formal request must be submitted to Piramal Finance. This serves as confirmation of your intent to close the loan before the scheduled tenure.
Follow these steps to complete the pre-closure of the Piramal Finance Personal Loan:
Carefully examine your loan agreement to understand Piramal Finance’s pre-closure policy. Pay close attention to any charges or conditions that may apply.
Contact Piramal Finance to obtain a detailed foreclosure statement. This document outlines the outstanding principal, interest, and applicable charges as of your planned closure date.
Ensure you have sufficient funds to repay the loan in full. This may involve using your savings, liquidating investments, or exploring other funding options.
Submit a written application to Piramal Finance requesting pre-closure of your loan. If there are co-applicants, they may also need to provide a No Objection Certificate.
Pay the foreclosure amount via online transfer, cheque, or demand draft. Always obtain a receipt as proof of payment.
Request an official No Dues Certificate from Piramal Finance after repayment. This confirms that the loan has been fully settled.
Check your credit report a few months after closure. Ensure the loan is updated as ‘Closed’ and your credit history reflects the repayment accurately.
Pre-closure of a personal loan can help you save on interest and achieve debt-free status sooner, but it also carries certain drawbacks. Here is a balanced view of both:
Pre-closing a loan reflects positively on your credit history by demonstrating responsible debt management. This can strengthen your profile for future loan applications.
By repaying the outstanding loan amount in one go, you avoid additional interest and monthly EMI payments. This can significantly reduce your overall borrowing cost.
Clearing the loan eliminates the need for regular EMI payments. This frees up monthly income for other financial priorities.
Most lenders levy foreclosure charges when a loan is pre-closed. The percentage varies across lenders and may reduce the savings from early repayment.
Paying a lump sum may strain your cash reserves, leaving you vulnerable during financial emergencies.
Paying off a personal loan early can help reduce interest costs and achieve debt-free status sooner. Keeping certain factors in mind can make the process smoother.
Carefully examine your loan agreement for any prepayment penalties or charges. Such fees may reduce the overall benefit of early repayment.
Evaluate the outstanding loan balance before proceeding. Pre-closing a larger balance generally results in greater interest savings compared to a smaller balance.
Ensure that paying the pre-closure amount in a lump sum does not strain your finances. Consider both your current financial commitments and future cash flow before making the decision.
Pre-closure of personal loans is subject to the individual policies and fee structures of each lender. The table below provides an overview of pre-closure fees of lenders available on Bajaj Markets:
| Pre-closure Facility | Pre-closure Charges |
|---|---|
| Bajaj Finance Personal Loan Pre-closure |
Up to 4.72% on the outstanding amount |
| Federal Bank Personal Loan Pre-closure |
3% of the outstanding loan amount + applicable taxes |
| Fibe Personal Loan Pre-closure |
Nil |
| Finnable Personal Loan Pre-closure |
5% of the outstanding loan amount |
| InCred Personal Loan Pre-closure |
Up to 5% + applicable taxes |
| Kissht Personal Loan Pre-closure |
Nil |
| Kotak Mahindra Bank Personal Loan Pre-closure |
Up to 4% of the outstanding principal + GST |
| KreditBee Personal Loan Pre-closure |
Nil |
| Kotak Mahindra Bank Personal Loan Pre-closure |
Up to 4% of the outstanding principal + GST |
| KreditBee Personal Loan Pre-closure |
Nil |
| L&T Finance Personal Loan Pre-closure |
5% of principal outstanding + applicable taxes |
| Freo Personal Loan Pre-closure |
Nil |
| Muthoot Finance Personal Loan Pre-closure |
2% to 6% of the outstanding loan amount |
| PaySense Personal Loan Pre-closure |
Up to 4% of the outstanding loan amount + GST |
| Privo Personal Loan Pre-closure |
Nil |
| SMFG India Credit Personal Loan Pre-closure |
Up to 7% of the outstanding principal |
| Upwards Personal Loan Pre-closure |
5% of the outstanding loan amount |
| YES BANK Personal Loan Pre-closure |
Up to 4% on principal outstanding |
Disclaimer: The details mentioned above are subject to change at the lender’s discretion.
Yes, Piramal Finance allows you to pre-close your personal loan by repaying the outstanding balance before the tenure ends. Applicable charges are levied as per the loan terms.
The lender may charge up to 5% of the outstanding loan amount + GST as pre-closure fees. The exact charge depends on the loan agreement.
You can avoid charges if your loan includes a zero-prepayment option. It is important to review the loan terms carefully before opting for pre-closure.
Yes, pre-closing your loan helps you save on interest by eliminating payments for the remaining tenure.