Muthoot Personal Loan Closure

Foreclosure of Muthoot personal loan refers to a situation where the borrower pays back the personal loan completely before the end of the loan agreement. In case of foreclosing the loan, the borrower will have to pay the current month's EMI, any outstanding dues if there are and the foreclosure fees.Muthootdoes not provide the facility of part payment

Steps of Muthoot personal loan pre closure are as follow:

• Visit the Muthoot branch and carry all the necessary documents like identity proof, last EMI payment, and loan account number to the Muthoot.
• Pay the outstanding loan amount as well as the foreclosure charges of the bank.
• Once all the documents are checked and the amount made, the bank will check to provide the acknowledgement. The acknowledgement will clarify that the borrower has paid the loan amount and there are no further outstanding dues left.

Apart from foreclosing of Muthoot Personal Loan, you may also prepay your personal loan partially. This is called personal loan part payment. Muthoot does not provide the facility of part payment.

Fees and charges associated with personal loan closure for Muthoot Personal Loan are listed in the table below:

Part Payment Fee	Not Allowed	Nil
Foreclosure fee	Not Allowed	Nil

Usual way of closing the loan is Regular closure. Muthoot Personal loan Pre-closure is the situation where the borrower repays the last EMI of the loan as per the pre-decided personal loan part payment schedule. The steps for the Pre-closure of Muthoot Personal loan are as follow:

• Pay the last instalment of the Muthoot loan and contact the bank for closing the loan.
• Provide all the relevant documents like identity proof, last EMI payment, and loan account number to the Muthoot branch where you opted for the loan.
• On checking all the documents and their authenticity, the bank will provide the NOC or No Objection Certificate. No objection certificate is proof that the borrower has paid all the EMIs and there is no outstanding due.

However, in order to make the loan less expensive, you may opt for a Muthoot Personal loan part payment. To reduce the interest burden, borrowers opt for foreclosure or part payment of the loan.

The documents required for Personal loan closure are:

• Loan statements
• Identity and address proofs such as Aadhar, Voter ID, Passport
• Cheque or demand draft

After the loan has been closed, it is important that you collect the acknowledgement slip, NOC certificates, payment receipts from Muthoot.

✅What is the pre-closure fee for personal loan?

Pre-closure fee or foreclosure charges is a penalty levied on a borrower when he prepays the personal loan before the end of the tenure. Pre-closure helps the borrower in reducing the interest burden. Muthoot does not provide the facility of part payment.

✅Can we close personal loans online for Muthoot?

No, you cannot close the personal loans online for Muthoot. Individuals are required to visit the Muthoot Branch to close the personal loan.Below are the steps to close the Muthoot personal loan:

• Visit the nearest Muthoot branch.
• Carry necessary documents like identity proof, address proof,and bank statements mentioning the final clearance of the last EMI.
• Once all the documents are successfully checked, the Muthoot will give the acknowledgement letter and NOC.

✅Does foreclosure of loan affect CIBIL?

Foreclosure may not directly affect your CIBIL score. However, your chances of creating a good credit history, which will result in an improved score, will be affected.