Axis Bank Personal Loan Preclosure is an easy process that requires payment of the total loan amount. To start the preclosure, you can contact Axis Bank Customer Care via email/phone. A valid photo ID, a checkbook, and an Axis Bank branch can be used to visit. Be sure to know all of the fees and documents. PrepayingPrepaying the personal loan should only be done after careful consideration.
Axis Bank Preclosure fees
- Prepayment of Parts – 5% plus GST
- Prepayment in total – 5% plus GST on principal outstanding
The bank has the right to alter these charges at any time.
How to close Axis Bank personal loan account?
To close your loan before the due date, visit your local Axis Bank Loan Centre. Bring your checkbook and valid photo ID.
How do I make a partial payment for Axis Bank personal loan account?
You may make a partial payment on your Axis Bank Personal Loan account by using the following method –
- You must hold a savings account at Axis Bank
- Axis Bank Mobile App Login
- Click on Quick Links to go to Axis Mobile. Click on Quick Links. Then, go to Loans-Outstanding-Make Payment-Part Payment.
Essential Things to Consider for Axis Bank Personal Loans Before Closing
- Extra payments will only be accepted if you transfer the amount stated in the foreclosure notice.
- The balance draft/cheque should be payable to AXIS Bank Ltd; Loan Account Number. The loan account number is XXXXXXXXXXX. Outstation cheques are not accepted.
- The loan must be settled in full and finality after the check is received or the draught has been drawn, and all fees have been paid up to the date of prepayment.
- Suppose you pay your EMI in full at the time of presentation. In that case, any excess amount will be credited to your repayment account via direct credit or NEFT (Pay Order) within 15 working days after the payment.
- If you want to get your Post Dated Cheques or Security Cheques back, you must submit a request to the lending center within 45 days of the loan closing date. If no requests are submitted within the time frame, they will be canceled and destroyed.
Essential Things to Consider Before Closing a Personal Loan
- Terms and Conditions Review your loan agreement to fully understand the conditions and terms associated with paying off your loan early. Prepayment penalties are charges by lenders for repaying a loan early. Prepayment can be costly. Make sure that you are aware of the fees and costs involved.
- Calculate your potential savings in interest by prepayingprepaying your loan. Paying off your loan earlier may be advantageous if the savings exceed any prepayment penalties. You can use online calculators to estimate the impact on interest rates of paying off your loan early.
- Other Financial Goals – Consider your financial situation overall and any other financial goals that you may have. It may be better to pay down your high-interest debts, like credit card debt, before paying off your loan. Prioritize your financial goals to ensure that prepayingprepaying a personal loan is in line with your overall plan.
- Budget considerations– Evaluate your finances and decide if you can comfortably pay off your loan before the due date without affecting your daily expenses or other financial obligations. PrepayingPrepaying a loan should not leave you in a financial bind or affect your ability to meet your other financial obligations.
- Lender’s policies — Contact your lender to find out their process for paying off a Personal Loan. Some lenders require that you follow a specific procedure or give notice before paying. Understanding your lender’s policies can help you avoid potential problems or delays during the prepayment process.
- Tax implications– Consider the tax implications that may arise from prepayingprepaying a personal loan. PrepayingPrepaying your loan can have an impact on your tax deductions. This is especially true if you claim tax deductions for the interest on the loan. To understand the tax implications, consult a professional tax advisor.
- Confirmation for prepayment– After you have made your prepayment request, confirmation from your lender to confirm that the loan is paid in full. Keep a copy of this confirmation as a record. This can prove your satisfaction with the loan and be helpful in disputes or future issues.
Conclusion
Closing your Axis Bank Personal Loan can be a wise financial decision. However, reviewing the loan terms and doing the math to calculate potential savings is essential. You should also consider your financial situation and any possible penalties or tax implications. Consult a financial advisor or your lender before prepayingprepaying your loan to ensure it aligns with your goals and financial circumstances.
FAQ about Axis Bank Preclosure charges
1: What is the pre-closure of a loan or prepayment?
The term “pre-closure” or “prepayment” of a loan describes the payment of the loan balance before the loan’s designated period ends. This allows the borrower to pay off their loan before the loan term.
2: Can we close a personal loan before the end date?
Pre-closure and prepayment are allowed on most personal loans, but you should check your loan agreement for specific terms. Prepayment penalties are charges by lenders for early repayment of loans. Other loans may be subject to restrictions or conditions.
3: Are there any fees or penalties for closing a personal loan before the end date?
Your loan agreement will determine the amount of interest you pay. Some lenders charge a prepayment penalty for paying off the loan early. It is important to check your loan agreement to determine the penalty amount and any conditions.
