Understand the preclosure process for a SMFG India Credit Personal Loan in detail, including preclosure charges and other criteria.
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.
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.
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:
Aadhaar Card, Voter ID, Passport, or any other accepted proof
A copy of your most recent loan statement
A cheque or demand draft covering the outstanding loan amount
If you have decided to pre-close your SMFG India Credit personal loan, follow these steps to complete the process smoothly:
Visit your nearest SMFG India Credit branch
Ask for a personal loan pre-closure request form at the branch
Fill in the form accurately, sign it, and attach the necessary documents
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.
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:
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
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
Pre-closing your personal loan requires careful planning. Here are a few things to check before proceeding:
Check your latest loan statement to know the exact amount due
Review SMFG India Credit’s pre-closure charges based on the number of EMIs paid
Make sure you have sufficient funds to cover the full repayment amount
Bring valid ID proof, your latest loan statement, and a cheque or demand draft for payment
Collect the No Objection Certificate (NOC) after closure as proof of full repayment
After pre-closure, monitor your credit report to ensure the loan is marked as closed