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Can I pay off my loan early?

If you close your loan early than anticipated, the majority of banks impose a prepayment penalty. Either the current loan balance or the interest the lender will lose as a result of pre-closure is used to determine the penalty amount, which is expressed as a percentage. The pre-payment penalty typically ranges from 2% to 5% of the total loan amount. Lenders may charge different amounts.

Please keep in mind that your loan agreement contains comprehensive information on the pre-payment penalty and the criteria associated with it. Before signing the agreement, make sure you have read it carefully.

You can attempt to avoid paying the pre-payment penalty in one of two ways. Find a lender that does not impose a pre-closure penalty first. Second, choose a lender who will let you pay off your loan with no penalties at a certain point in the term.

What are the documents required for loan pre-closure?

In the event of loan pre-closure, the borrower and lender must exchange a few key documents. As evidence that you have paid back your loan, make sure you have all of these documentation.

Documents to be submitted to the lender:

• KYC documents
• All relevant loan documents
• Bank statements reflecting EMI payments made to date.
• Pre-payment statement

Documents to be collected from the lender:

• Receipt of pre-closer payments
• No objection certificate (NOC) to close the personal loan
• Personal loan closure certificate
• Payment due certificate

You may want to ask your lender for an exact list of the documents needed as per their process.

Do you offering refinancing ?

Yes, SFS offers refinancing.Getting your new lender to pay off your old lender and take over the remaining loan balance is the easiest way to refinance. After selecting a lender with better terms and conditions, you can finish the necessary paperwork and other formalities so that the new lender can pay off the previous lender and assume responsibility for the remaining loan balance. After that, you would begin making EMI payments to the new lender.

can i do all of my borrowing with you ?

 
No, it’s not recommended to take on too many loans. Taking on too much debt can be difficult to manage and can negatively affect your credit score. Here are some things to consider when borrowing money: 
 
 

• Credit score: Your credit score affects the terms and conditions of loans, such as interest rates and repayment periods. A higher credit score can lead to better loan terms. 
   
   
• Repayment: Make sure you’re comfortable with the monthly payments. 
   
   
• Interest rates: Higher interest rates mean you’ll pay more for the money you borrow. 
   
   
• Fees: In addition to interest rates, you may also be charged fees like origination, application, or late fees. 
   
   
• Secured or unsecured: If the loan is secured by collateral, like a home, you could lose that collateral if you default on payments. 
   
   
• Insurance: If you take out a large loan, like for a car or home, consider taking out insurance to protect your family. 
   
   

If you’re considering borrowing money from friends or family, it’s important to be transparent and honest about your financial situation. You should also be clear about the amount you need and the repayment terms.

When should i apply for loan?

When considering the application for a personal loan, it is advisable to do so during periods when the terms are most advantageous, such as when interest rates are low or nonexistent, and when processing fees are minimal or waived entirely. It is essential to secure a sufficient amount from the lender to meet your financial needs while ensuring that the overall cost of the loan remains as low as possible. A thorough examination of these factors is warranted.

Identifying the Most Favorable Rate for a Personal Loan
Interest rates for personal loans tend to be elevated, as borrowers are not required to provide any form of security or collateral. In some Indian financial institutions, these rates can reach as high as 25% annually. However, there has been a recent trend among certain banks to reduce their minimum interest rates on personal loans to below 10%. To be eligible for the most competitive interest rates, borrowers typically need to maintain a credit score of at least 750 and demonstrate a repayment history devoid of any late payments.