Prepayment of Personal Loan: Charges, Features and Benefits

Whether you want to make a big purchase, need urgent cash for medical emergencies, have wedding expenses, or need to  pay for higher education, an instant personal loan can be one of most viable solutions as you can obtain funds online anytime and use them without constraints. The application is quick, convenient and requires minimal documentation for a seamless process. Being unsecured, you do not have to worry about providing any security or guarantee. However, prepayment of a personal loan is an important factor that you must consider while paying your dues. Does it come with additional charges and fees? Read on to understand how you can prepay your personal loans.   

Pre-closure of a personal loan
 

You could choose to opt for a foreclosure of the loan at any point, depending on your financial situation. However, before you opt for a foreclosure, you should get to know more about the prepayment of personal loans.

An instant personal loan usually comes with a lock-in period of about a year. After this period, you can pre-pay the total outstanding amount to save a good amount on the interest. Depending on whom you avail a loan from, you might have to pay interest on pre-payment too. The rates will vary from one lender to another, in the range of 3-5%.

Look for a suitable loan option that doesn’t charge a penalty for pre-closure such as IDFC FIRST Bank FIRSTmoney instant personal loan. With this digital loan, you can enjoy a credit limit of up to ₹10 lakhs with an option to withdraw multiple times or at once in full. This makes it highly suitable for your varying financial needs and lets you use funds as whenever you need and whatever amount is needed. Along with a completely digital personal loan application, you get one of lowest interest rates and a swift disbursal into your bank account.

With this line of credit, you can then be assured of having the benefit of immediate financial backup without it burning a hole in your pocket with its high interest rates. The zero pre-payment charge option from FIRSTmoney can free you of the financial implications and the stress of having to make payments each month for years to come.

Features and benefits of an instant personal loan through FIRSTmoney
 

1. Instant loan access:

With IDFC FIRSTmoney, you gain immediate access to funds whenever the need arises, eliminating the waiting period associated with traditional loan approval processes. This means that when you require financial assistance, you can rely on IDFC FIRSTmoney to provide quick and efficient solutions.

2. Zero foreclosure charges:

IDFC FIRST Bank FIRSTmoney offers a cost-effective borrowing solution through zero foreclosure charges. This means that you can repay your used funds anytime with flexible tenure options, without incurring any additional costs. This provides you with the financial flexibility to manage your repayments in a manner that suits your financial situation.

3. Flexible loan amounts:

With this instant personal loan, you can choose any amount starting from ₹5,000 up to your approved limit. Additionally, you have the option to withdraw amounts in batches or in one go. This means that you can access the funds you need, when you need them, without being restricted by predetermined loan amounts.

4. Convenient repayment options:

FIRSTmoney offers you the freedom to choose from flexible tenure options that suit your financial needs. This means that you can tailor your repayment schedule to align with your income and financial commitments, ensuring that you can manage your repayments without undue stress or strain.

5. Digital application:

The entire process, from application to approval, is conducted online through the bank's digital platform or mobile app, offering unparalleled convenience and accessibility. To apply for an instant personal loan, all you need is your physical PAN card during the KYC process. This means that you can apply for and manage your loan from the comfort of your own home, at a time that is convenient for you.

Conclusion
 

Instant personal loans can prove to be useful in meeting your emerging expenses through quick disbursals. However, it is important to go through the repayment terms and conditions and check whether you get the flexibility of repaying your loans early without penalties in order to effectively reduce your financial burdens. With FIRSTmoney instant personal loans, you enjoy greater flexibility to withdraw funds unlimited times and pay off your dues without any hassles of foreclosure charges.  


 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.