Hello Jeevan. I took a personal loan from the SBI bank in 2021 and foreclosed it a couple of weeks ago. Hence, I would like to share the SBI personal loan foreclosure charges with you. There are some exceptions, apart from the general foreclosure charges. So, I’ll include them as well here.
Coming back to the general foreclosure charges, SBI levies no pre-closure penalty except in the case for rent plus in which 1 percent of the loan amount prepaid will be taken as the foreclosure penalty. Let me describe the rest below.
What are the Foreclosure Charges of SBI Personal Loan?
Now that you are aware of the prepayment charges, let me tell you about some exceptions, as well. SBI does not levy any prepayment/foreclosure charges in case the account is closed after you’ve opened a new loan account under the same scheme.
If you are a defence customer. A 100 per cent waiver of the foreclosure charges would be applicable irrespective of the tenure of the loan.
This is all about the foreclosure charges SBI personal loans. I hope you find this information helpful.
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My sister sought to foreclose on a personal loan that she had taken out from SBI after a year. However, we were not sure of SBI personal loan foreclosure charges. So, my sister and I went to the bank branch and they informed us that she would have to
pay 3% + GST of the prepaid amount in order to foreclose her loan.
SBI Foreclosure Charges on Personal Loan
The bank employees informed my sister that the pre-closure fee for SBI personal loans is normally 3% of the remaining loan sum. They did, however, agree on a few exceptions to this rule. They informed her that the pre-closure fee on a Rent Plus personal loan is just 1% of the remaining loan sum.
They also told us that this fee is only assessed by SBI if you decide to pay back the loan balance before the prearranged term expires.
They provided her with a breakdown of the SBI personal loan pre-closure fees:
- Personal loans with fixed rates:
3% of the remaining loan balance
- Personal loans with floating rates:
3% of the remaining loan balance
- Rent Plus personal loans:
One per cent of the remaining loan amount
After reading all of these foreclosure details and being aware of the SBI personal loan pre-closing costs, my sister wasn't sure if she wanted to foreclose on her loan. She therefore chose not to go ahead with a personal loan foreclosure.
I should clarify, though, that you will only be responsible for these pre-closure fees if you pay down the loan balance during the first three years of the loan term. There are no pre-closure fees after three years.
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Authors Of The Question
What are SBI Personal Loan Foreclosure Charges?
Jeevan
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2 Answers
10 months
2024-02-01T12:49:48+00:00 2024-08-06T14:59:57+00:00Comment
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