If you have an ongoing personal loan with SMFG India Credit, you may choose to pre-close it before the scheduled maturity to save on interest costs. Preclosure allows you to settle the outstanding loan amount in full before completing the tenure.

SMFG India Credit allows preclosure under specific conditions. You may need to complete a minimum number of EMI payments before initiating the process. Additionally, preclosure charges may apply based on the tenure passed, and there could be a limit on the amount you can prepay. Understanding these terms in advance ensures a hassle-free loan closure.

SMFG India Credit Personal Loan Pre-closure Charges

The pre-closure of a personal loan with SMFG India Credit is subject to specific conditions. The applicable charges depend on the number of EMIs you have paid. 

Here is a breakdown of the foreclosure charges:

Number of EMIs Paid

Foreclosure Charges (%)

0 to 6 EMIs

Foreclosure Not Allowed

7 to 17 EMIs

7.00%

18 to 23 EMIs

5.00%

24 to 35 EMIs

3.00%

36 or more EMIs

0.00%

Disclaimer - The charges are subject to policy changes in SMFG India Credit.

Requirements for SMFG India Credit Personal Loan Pre-closure

If you wish to pre-close your SMFG India Credit Personal Loan, you must repay the entire outstanding amount in full. Along with the loan amount, you must also pay any applicable foreclosure charges and fees.

To initiate the pre-closure process, you need to provide the following documents:

  • Valid identity and address proof

Aadhaar Card, Voter ID, Passport, or any other accepted proof

  • Latest personal loan statement

A copy of your most recent loan statement

  • Payment instrument

A cheque or demand draft covering the outstanding loan amount

How to Pre-close Your SMFG India Credit Personal Loan

If you have decided to pre-close your SMFG India Credit personal loan, follow these steps to complete the process smoothly:

  1. Visit your nearest SMFG India Credit branch

  2. Ask for a personal loan pre-closure request form at the branch

  3. Fill in the form accurately, sign it, and attach the necessary documents

  4. Hand over the completed form and your documents to the concerned representative

Before processing the request, SMFG India Credit will verify your identity, so ensure you carry the correct ID proofs. Pay the total outstanding amount along with applicable foreclosure charges as per policy.

Once the loan is successfully closed, you will receive an NOC from SMFG India Credit. This document serves as proof of loan closure and should be kept safely for future reference.

Advantages and Disadvantages of Pre-closing Personal Loan

Pre-closing your SMFG India Credit personal loan can offer several benefits, but it also has certain drawbacks. Consider both before making a decision.

Here are the advantages and disadvantages listed in detail:

Advantages of Pre-closing a Personal Loan

  • Saves on Interest Costs

Paying off the personal loan early reduces the total interest paid over time

  • Improves Financial Stability

Eliminating debt can lower your monthly financial commitments

  • Enhances Credit Score

A successfully closed loan reflects positively on your credit history

  • Frees Up Credit Eligibility

Clearing a loan allows you to qualify for new credit when needed

Disadvantages of Pre-closing a Personal Loan

  • Pre-closure Charges

SMFG India Credit applies foreclosure charges based on the number of EMIs paid

  • Loss of Liquidity

Using a large sum to pre-close the loan may strain your finances

  • Opportunity Cost

The funds used for pre-closure might yield better returns if invested elsewhere

Things to Ensure When Pre-closing a Personal Loan

Pre-closing your personal loan requires careful planning. Here are a few things to check before proceeding:

  • Confirm Outstanding Balance

Check your latest loan statement to know the exact amount due

  • Understand Foreclosure Charges

Review SMFG India Credit’s pre-closure charges based on the number of EMIs paid

  • Ensure Funds Availability

Make sure you have sufficient funds to cover the full repayment amount

  • Carry Necessary Documents

Bring valid ID proof, your latest loan statement, and a cheque or demand draft for payment

  • Request and Retain NOC

Collect the No Objection Certificate (NOC) after closure as proof of full repayment

  • Check Credit Score Update

After pre-closure, monitor your credit report to ensure the loan is marked as closed

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