It is always better to analyse your financial position before prepaying your bank personal loan. However, in case you have decided to do so, a proper research about the prepayment procedure will help you to be prepared for any kind of bank formality, according to http://ift.tt/2w4vQEq.
The following are the precautions to be taken before closing a personal loan.
Original documents required: Whenever you tend to close a personal loan, the original documents should be kept by your side. The documents include contract, letter of guarantor and insurance letter.
Amount to pay before closing: If a borrower opts to close a personal loan, the banks asks him to pay an amount higher than the original amount.
Certificate of closure: Certificate of closure is nothing but another name for NOC (No Objection Certificate). This certificate is issued by the bank mentioning that there all dues have been cleared.
Assessment of final settlement: It is suggested that the borrower is physically present when the computation of final settlement is being done. A check on surplus as well as prepayment charges has to be made by the borrower.
Cross verification of every detail: Every minute detail relating to a personal loan matters to a large extent. So it is advisable to go for a cross check all through the loan closure process.
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