Personal loans are a popular choice amongst people who are looking for instant funds for an upcoming event or for an emergency. These loans provide instant loan disbursement with a flexible repayment tenure and no collateral which makes it an ideal choice for many who do not own assets but require a loan.
If you have an ongoing Kotak Mahindra Bank personal loan and are considering foreclosing it, you can complete the process easily in simple steps. However, you must note that the bank will charge you foreclosure charges as applicable which you will be bound to pay.
Note: The foreclosure charges may vary depending on the updated rules and regulations of the bank. Hence, for updated charges, visit the bank’s website.
Foreclosure Type | Fees and charges |
Full pre payment | 5% of the outstanding loan amount + GST |
Source: Bankbazaar
In conclusion, repaying your personal loan can be a great way to avoid any long term financial burden. However, you must understand and evaluate the charges and fees involving your personal loan foreclosure. This way you can easily determine whether foreclosing the loan will be beneficial to you or not.
You must also ensure that you pay your EMIs on time and do not make a single default in repayment as this can adversely affect your credit score. This can reduce your chances of getting better deals in the future. Paying your EMIs on time can help you build a strong credit profile.
(Note: Raising a loan comes with its own risks. So, due caution is advised)
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