Axis Bank personal loan preclosure is a simple process that needs payment of the entire loan amount. To start the preclosure process, you need to contact Axis Bank customer care through an email/phone call. You can also visit any of Axis Bank’s branches with a valid photo ID and a cheque book. Make sure you know the preclosure charges and have all the documents ready. You should also prepay the personal loan only after careful financial consideration. 

Axis Bank Personal Loan Preclosure Charges and Fees

  1. For Part pre-payment – 5% + GST on the amount of the part pre-payment
  2. Full Pre-payment – 5% + GST on the principal outstanding

These charges are bound to change at the bank’s discretion from time to time.

How to Preclose Axis Bank Personal Loan Account?

Visit your local Axis Bank Loan Centre with your chequebook and a valid photo ID to pre-close your loan.

How to Make Part Payment for Axis Bank Personal Loan Account?

You can make part payment of your Axis Bank personal loan account in the following way –

  1. You must have a savings account with Axis Bank
  2. Log in to the Axis Bank mobile app 
  3. Go to Axis Mobile. Click on Quick Links. Then, go to Loans-Outstanding-Make Payment-Part Payment

Things to Remember for Axis Bank Personal Loan Preclosure

  1. Transfer the same amount as per the date of the foreclosure letter as extra payments over and above that will not be accepted.
  2. The balance draft/cheque must be in favor of AXIS BANK LTD; Loan Account No. XXXXXXXXXX; outstation cheques will not be accepted for the same  
  3. Realisation of the check or draught and payment of all fees incurred as of the pre-payment date are requirements for the loan's full and final settlement. 
  4. If the EMI is paid in full upon presentation, the excess money will be returned to your repayment account through a pay order or direct credit (NEFT) within 15 days of the realization of your extra EMI payment. 
  5. Within 45 days after the date the loan was closed, you must submit a request at the lending center if any Post Dated or Security Cheques were not cashed and you would like to have them returned to you. Requests will be canceled and destroyed if none are received within the allotted time span.

Things to Note Before Preclosure of a Personal Loan

  1. Loan terms and conditions - Review your loan agreement to understand the terms and conditions associated with pre-paying your personal loan. Some loans may have pre-payment penalties, which are fees charged by the lender for paying off the loan before the designated loan term. Make sure you understand the costs associated with pre-payment and whether it makes financial sense for you to proceed.
  2. Interest savings - Calculate the potential interest savings from pre-paying your personal loan. If the savings outweigh any pre-payment penalties, it may be beneficial to pay off your loan early. Use online calculators or consult with a financial professional to understand the impact of pre-payment on your loan's interest costs.
  3. Other financial goals - Consider your overall financial situation and other financial goals you may have. If you have other high-interest debt, such as credit card debt, it may be more financially prudent to pay off that debt first before pre-paying your personal loan. It's important to prioritize your financial goals and make sure pre-paying your personal loan aligns with your overall financial plan.
  4. Budget considerations - Evaluate your budget and determine if you have enough funds to comfortably pre-pay your personal loan without negatively impacting your day-to-day expenses and other financial obligations. It's important to ensure that pre-paying your loan won't leave you financially strained or jeopardize your ability to meet other financial responsibilities.
  5. Lender's policies - Contact your lender and inquire about their specific process for pre-paying a personal loan. Some lenders may require you to follow a specific procedure or provide notice before making a pre-payment. Understanding your lender's policies can help you avoid any potential issues or delays in the pre-payment process.
  6. Tax implications - Consider the potential tax implications of pre-paying your personal loan. In some cases, pre-paying a loan may impact your tax deductions, especially if you were claiming tax deductions on the interest paid on the loan. Consult with a tax professional to understand the tax implications of pre-paying your personal loan.
  7. Confirmation of pre-payment - Once you've made the pre-payment, request a confirmation from your lender that the loan has been paid off in full, and keep a copy for your records. This will serve as proof that you have satisfied your loan obligation and can be helpful in case of any future disputes or issues.

 

Conclusion

Preclosure of Axis Bank personal loan can be a smart financial move, but it's important to carefully review your loan terms, do the math to determine potential interest savings, consider your overall financial situation, and understand any potential penalties or tax implications before proceeding. It's always recommended to consult with a financial professional or your lender to ensure that pre-paying your personal loan aligns with your financial goals and circumstances.

FAQ of Axis Bank Personal Loan Preclosure Charges

1:What is pre-closure or pre-payment of a personal loan?

Pre-closure or pre-payment of a personal loan refers to paying off the outstanding loan amount before the designated loan term ends. It allows borrowers to repay their personal loan in full before the original loan tenure.

2:Is pre-closure allowed for all personal loans?

Most personal loans allow for pre-closure or pre-payment, but it's important to check the terms and conditions of your specific loan agreement. Some loans may have pre-payment penalties, which are fees charged by the lender for paying off the loan early, while others may have certain restrictions or conditions.

3:Are there any penalties or charges for pre-closing a personal loan?

It depends on the terms and conditions of your loan agreement. Some lenders may charge a pre-payment penalty, which is a fee for repaying the loan before the designated loan term. The penalty amount and conditions vary from lender to lender, and it's important to review your loan agreement or contact your lender to understand the penalties or charges, if any, associated with pre-closing your personal loan.