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.
Get personal loans without hefty paperwork through NoBroker Read More: Does Foreclosure Affect Your CIBIL Score?Authors Of The Question
What are SBI Personal Loan Foreclosure Charges?
Jeevan
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7 months
2024-02-01T12:49:48+00:00 2024-08-06T14:59:57+00:00Comment
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