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Union Bank of India Personal Loan Closure

Union Bank of India Foreclosure Charges

Last Updated 07th Jun 2021

  • Union Bank of India 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 Union Bank of India Personal loan is called Part payment, whereas closing the loan completely is called foreclosure.
  • You can foreclose your personal loan by contacting the Union Bank of India 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 Allowed Allowed at Nil prepayment charges
Foreclosure fee Allowed Allowed at Nil prepayment charges
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Union Bank of India Personal Loan Pre-Closure

Foreclosure of Union Bank of India 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.Union Bank of India allows part payment of personal loan after 0 Month at Nil prepayment charges

Steps of Union Bank of India personal loan pre closure are as follow:

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

Union Bank of India Personal Loan Part-Payment

Apart from foreclosing of Union Bank of India Personal Loan, you may also prepay your personal loan partially. This is called personal loan part payment. Union Bank of India allows part payment after 0 Month at Nil prepayment charges

Fee and Charges of Union Bank of India Personal Loan Closure

Fees and charges associated with personal loan closure for Union Bank of India Personal Loan are listed in the table below:

Part Payment Fee Allowed Allowed at Nil prepayment charges
Foreclosure fee Allowed Allowed at Nil prepayment charges

Union Bank of India Personal Loan Regular Closure

Usual way of closing the loan is Regular closure. Union Bank of India 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 Union Bank of India Personal loan are as follow:

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

Required Documents for Union Bank of India 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 Union Bank of India.

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. Union Bank of India allows part payment of personal loan after 0 Month at Nil prepayment charges.

Can we close personal loans online for Union Bank of India?

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

  • Visit the nearest Union Bank of India 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 Union Bank of India 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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