First of all, you should find out how much is the outstanding amount of your loan. You can get information about this by visiting the bank branch. Along with this, also get information about how much fee you will have to pay for closing the personal loan prematurely.

Whenever there is a sudden need for finance, a personal loan comes in handy in such a case. There are many such works like medical expenses, education expenses, or any other sudden expenses, for which a personal loan is taken. But when it comes to closing it, the process can seem a bit confusing. Don't worry! Closing a personal loan offline is the same in most banks, just some terms and conditions may be different.

Step-by-step process to close a personal loan offline

1. What is the outstanding amount

First of all, you should find out how much is the outstanding amount of your loan. You can get information about this by visiting the bank branch. Along with this, also get information about how much fee you will have to pay for closing the personal loan before time.

2. How do you want to close the personal loan

Do you want to pay the personal loan before the end of the full loan period or do you want to close the loan by paying all the EMIs regularly? Whichever option you are choosing, you should get information from the bank about it. Such as pre-closure fee etc.

3. Submit the application form

To close your loan account, you will have to get an application form from the bank. In this application form, you will have to give information about the account number, name, reason for closure, etc. If you are opting for foreclosure, then you will have to give information about the mode of payment such as bank transfer, cash, or cheque.

4. Pay the entire outstanding amount

In case of foreclosure, the bank will give you information about the outstanding amount which will include interest and other charges. You will have to pay through a demand draft cash cheque or RTGS / NEFT.

If you want to close your personal loan account regularly, then make sure that you have paid all your EMIs on time. To avoid future problems, do not forget to take the payment receipt.

5. Ask for NOC from the bank

When you complete the payment, do not forget to get a No Objection Certificate from the bank. This will certify that you have paid your loan completely and the loan has been closed. To get the NOC, you will have to apply to the bank.

6. Do not forget to get the documents

When you completely close the loan account, then definitely get the last statement of the loan account which has complete details of the payment. Apart from this, do not forget to get whatever security or documents you had submitted for your loan from the bank.

7. Checking the credit report is important

You must check your credit report some time after the loan is closed. In which ensure whether the loan account is updated as closed or not. If it is not updated then you will have to contact the bank.

Some bonus tips

- Keep a copy of every paper like receipt, NOC, statement so that you do not face any problem later.

- Before going to the bank, confirm all the necessary documents and procedure. So that you do not have to go to the house and the bank again and again.

- Ask about the foreclosure fee (up to 2-5%) and lock-in period in advance. So that you do not have any problem in completing this process.

With the process mentioned above, you can easily close your personal loan offline and live a debt-free life.