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SBI Personal Loan Closure

SBI Foreclosure Charges

Last Updated 18th Jun 2021

  • SBI Personal loan pre-closure refers to a situation where the borrower pays back the loan before the end of a personal loan agreement either fully or partially.
  • Partial payment of SBI Personal loan is called Part payment, whereas closing the loan completely is called foreclosure.
  • You can foreclose your personal loan by contacting the SBI branch where you availed the loan.
  • Ensure collecting NOC and loan statements of your last paid EMIs once you prepay or part pay your personal loan.
Part Payment Fee Not Allowed Nil
Foreclosure fee Allowed Allowed at 3%
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SBI Personal Loan Pre-Closure

Foreclosure of SBI 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.SBI allows part payment of personal loan after 6 Months at 3%

Steps of SBI personal loan pre closure are as follow:

  • Visit the SBI branch and carry all the necessary documents like identity proof, last EMI payment, and loan account number to the SBI.
  • 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.

SBI Personal Loan Part-Payment

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

Fee and Charges of SBI Personal Loan Closure

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

Part Payment Fee Not Allowed Nil
Foreclosure fee Allowed Allowed at 3%

SBI Personal Loan Regular Closure

Usual way of closing the loan is Regular closure. SBI 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 SBI Personal loan are as follow:

  • Pay the last instalment of the SBI 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 SBI 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 SBI Personal loan part payment. To reduce the interest burden, borrowers opt for foreclosure or part payment of the loan.

Required Documents for SBI Personal Loan Closure

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 SBI.

FAQs

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. SBI does not provide the facility of part payment.

Can we close personal loans online for SBI?

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

  • Visit the nearest SBI 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 SBI 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.


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