How do you write an application for a loan closure?

How do you write an application for a loan closure?

Respected sir, I, ___________(Name) hold a ____________ (type of loan account) account in your bank. I am writing this letter to request you to close my ____________ (type of loan account) account bearing account number ____________ (Loan Account no.).

What is pre-closure letter?

Pre-closure Usually, there is a mandatory lock-in period of 6 months to one year (depending on your loan tenure) that is mentioned in the personal loan closure letter. After the completion of this lock-in period, you can repay the remaining amount altogether.

What is a loan closure letter?

The bank will issue a loan closure letter or NDC (No Due Certificate) stating that all dues have been repaid and there is no outstanding amount in your name.

How do I pre-closure a personal loan?

What to do:

1. Visit bank with the complete set of documents (as mentioned above).
2. You may be required to fill a form or write a letter requesting pre-closure of the Personal Loan account.
3. Pay the pre-closure amount.
4. Sign the required documents, if any.
5. Take acknowledgement of the balance amount you have paid.

How do you write a letter requesting pre closure of a personal loan?

Respected Sir/Madam, With due respect, I ________ (your name) and I do hold a personal loan account in your branch bearing account number ___________ (account number). I am writing this letter to request you for the foreclosure of above-said personal loan.

How do I write a letter to close an account?

I request you to please close my saving account and do not proceed with any transactions. I will be returning my passbook, cheque-book, cards along with my application. Kindly close my bank account and transfer the balance amount in the below-mentioned account details.

What is pre-closure of loan?

Types of personal loan closures Personal loan pre-closure: A personal pre-closure is basically when the borrower decides to close the personal loan before the set tenure. In most cases, the borrower can opt for a personal loan pre-closure after a year or payment of a minimum of 12 EMIs.

Is pre-closure of personal loan advisable?

The pre-closure facility reduces your debt burden; hence it would be a good option for your financial health. No impact on your credit score: Foreclosure or pre-closure of the Personal Loan does not affect your credit score.

How do I close my loan account online?

To close a loan account:

1. Click Requests > Closure of Loan A/C. A Closure of Loan A/C page appears.
2. Select the loan account you wish to close.
3. Select the transaction account which will be debited to close the loan. Figure 1 shows sample settings.
4. Click [Submit].

What is loan foreclosure?

Loan foreclosure is the full repayment of the remaining loan amount in one single payment instead of paying it back in multiple EMIs. It is an existing part of your personal loan process in which you can repay the loan before your scheduled EMI period.

How do I write a application to close bank account and transfer funds?

I hereby request you to kindly close my above-referred savings/current bank account no ………………. and transfer the balance amount in my above-mentioned bank account.