Personal loan: The best option to get the most money when you suddenly need money is a personal loan. Information on pre-closure and part payment or partial payment should be sought while taking personal loan. Today we are going to show you about both of these. In fact, a personal lawn can be closed in three ways.
In this the customer pays EMI every month. EMI stops when full payment is made on time.
The bank should be contacted for loan closure after paying the last installment of the loan.
This can also be talked about in customer care. In addition, communication can be done by mail.
When a person pays a loan before the loan expires, this is called pre-closure.
Some organizations charge a loan for pre-closure.
Banks have different lock-in periods, before which any loan can be closed.
The bank charges a pre-closure charge to cover the loss on the interest amount.
The bank has different rules regarding this.
Some banks do not charge for pre-closure.
If you want to pre-close, you should communicate with the bank.
Partial payments can be made from time to time if you want the loan to be repaid soon.
There are two benefits to partial payments, either your EMI will go down or your loan period will go down. Which of these to choose is up to you.
Another peculiarity is how many times between partial payments can be made.
Does it affect the credit score?
Considering that the bank also charges for partial payment or pre-payment closure, the net profit in interest is nowhere higher than that charge.
Experts say the immediate effect of the pre-closure is not visible.
But in the long run this has a negative effect on the credit score.
This option can be chosen if you already have a good credit score.
If your credit score is improving, you should avoid pre-closure in that situation.