This blog just posts information for ForClosure the personal loans availed. This is common practice to close the loan before the period is over. For example if you got 2 lakhs as Personal Loan in the ICICI Bank, then EMI for the two years tenure would be Rs.9556. Assume the rate of interest is 14% p.a..
Now you have completed the one years EMI Payment and you want to pay the remaining amount and close the loan account. Note that ForClosure is possible only after 6 months incase of ICICI Bank. By doing the forclosure you can save some extra interest money for the remaining period.
ICICI Bank charges 5% if you want to close the loan account. This 5% will be charged on the remaining principal amount. In the future posts I will be writing about the Personal Loans in the other banks and merits and demerits of the Personal Loans. Happy reading till my next post….Please post your comments below.