How to pre-close your PNB personal loan? A step-by-step guide

The Punjab National Bank (PNB), allows borrowers to pre-close their existing personal loans in a seamless fashion. This enables the borrowers to settle and close out with their outstanding debts before the stipulated tenure.

Now, this approach can result in immense savings on interest and boost one’s credit profile. As of April 2025, PNB does not levy pre-payment or even foreclosure charges on personal loans, thus helping in making prompt repayment financially beneficial for the borrowers.

Step-by-step guide to pre-close PNB personal loan

1. Check loan agreement: Carefully check your loan documents to clearly understand any specific terms related to pre-closure.
2. Visit the nearest branch: Pre-closure generally cannot be executed online. That is why you will be required to visit your nearest PNB branch and speak to a loan officer appointed by the bank to initiate the process.
3. Submit the needful documents:

• Valid identification proof for verification (e.g., Aadhaar card, PAN card, passport).
• All original loan documents, receipts, applications etc.
• Original bank statements reflecting the latest EMI payment.
• Pre-closure request form properly filled and signed by you.

4. Request a pre-closure statement: A pre-closure statement from the bank may incur a total fee of ₹750 along with GST. This statement must be requested by the borrower.

5. Submit the final payment: By making the final payment, you should settle the outstanding loan amount through cheque, cash or even demand draft. The easiest method can be discussed by the bank officials.

6. Collect the payment acknowledgement: Now post the final payment, speak to the concerned bank officials and collect your acknowledgement letter confirming the receipt.

7. Take the no objection certificate (NOC): Once the entire process is complete, the bank will issue a clearance i.e., a no objection certificate in a few days. It is important to collect this document as it will officially mention the closure of your loan account.

Important considerations before pre-closing your PNB personal loan

• Third party pre-payment: PNB might charge 2-3% of the principal prepaid along with GST if you are making the prepayment through a third party.
• Impact on credit score: Closing your personal loan in time can positively boost your credit score and improve your overall credit profile.
• Authorised representative: If the borrower is not in a position to visit the bank, then they can authorise someone else to act on their behalf. In this case the authorised person must carry an authority letter signed by the original borrower along with other important documents.

Therefore, by following these simple steps and keeping the above mentioned considerations in mind borrowers can successfully pre-close their PNB personal loans.

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