What are the Pre Closing Charges for SBI Personal Loan?

Wondering about SBI personal loan pre closing charges? State Bank of India (SBI) offers personal loans with competitive terms, and an important consideration for borrowers is the pre-closure or prepayment charges. Pre-closure charges are the fees levied by the bank when a borrower decides to repay the entire loan amount before the completion of the loan tenure. Generally, it is 3%.

What is Personal Loan Pre Closure Charges SBI?

SBI generally allows pre-closure of personal loans after a minimum lock-in period of 6 months from the date of loan disbursement. This lock-in period can vary depending on the specific terms of the loan agreement.

• For SBI personal loans, the pre-closure charges are typically 3%. In many cases, SBI does not levy any pre-closure charges for personal loans, especially if the pre-closure is done after a specified period (usually one year).

• However, if pre-closure is done within the first year, a nominal charge of around 3% on the outstanding principal amount may be applied. This policy can vary, so borrowers should verify the exact charges from their loan agreement or contact SBI directly.

• To initiate the pre-closure process, borrowers need to submit a formal request to SBI. This can be done by visiting the branch or through the bank’s customer service channels.

• Borrowers may be required to provide necessary documents such as loan account statements, identification proof, and a written application for pre-closure.

It is important to consider the timing of pre-closure to maximize interest savings while minimizing charges.

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If a borrower has an outstanding principal amount of ₹2,00,000 and wishes to pre-close the loan within the first year, and the pre-closure charge is 3%, the fee would be: Pre-Closure Charge=3/100×2,00,000=₹6,000

If pre-closure is done after one year, the charge may be waived off or significantly reduced. Borrowers should verify the specific terms and conditions from their loan agreement or contact SBI directly to get accurate information.

This is all about pre closure charges for personal loan SBI.

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For the early repayment of the outstanding amount or for the preclosure of personal, banks do levy a charge. Since my husband has done the preclosure of personal loan, I am well aware of the preclosure of SBI personal loan charges. You need to understand that no preclosure charges are levied by SBI except for Rent Plus, in which 1% of the loan amount prepaid is charged as a prepayment penalty.

What are the SBI Pre Approved Personal Loan Pre Closure Charges?

There are certain conditions levied on SBI yono loan pre closure charges. Here are the two aspects of it:

• Prepayment penalty:

1% + GST is levied quarterly on the prepaid amount if it is prepaid within two years from the date of loan disbursement

• Foreclosure charges:

Foreclosure charges, which are around 3% + GST on Theo balance (theoretical balance) are levied only if closed within two years from the date of disbursement of the loan

I would, however, suggest you visit the bank and ask the loan executive for more details. The charges might vary based on the outstanding loan amount so you better be sure about them.

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I was really confused about the pre closure charges for personal loan SBI. As I wanted to pre close my personal loan, I visited the bank and asked the loan executive about it. That is when I learned that no pre-payment or pre-closure penalty will be levied for any of the personal schemes after 2 years of disbursement of the personal loan.

What is the Pre Closure Charges for SBI Personal Loan?

The loan executive states that foreclosure charges of 3% + GST on Theo balance are to be levied only if the loan is closed within 2 years from the disbursement of the loan. If you are foreclosing the personal loan after 2 years of the loan disbursement with the help of another loan under the scheme, no SBI pre closure charges for personal loan will be levied.

Is Prepayment Allowed in Personal Loan?

The prepayment rule for personal loan varies. Usually, borrowers can foreclose or prepay their loan 6 months after the loan has been disbursed. 

Prepaying your loan is a good option, as it reduces your debt burden. You can always visit SBI’s official website or your nearby branch to learn more details about it.

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Loans do feel like a debt and like everyone, my sister too wanted to get over with her personal loan debt. She had taken a personal loan from SBI and she wanted to foreclose it after almost one year. But she wasn’t aware of SBI personal loan preclosure charges. So, when she went to the bank to foreclose her loan, the bank officials told her that to foreclose she had to pay

.

SBI charges this fee only if you choose to repay the loan amount before the end of the agreed-upon term. They informed her that this fee is intended to compensate the bank for the loss of interest income they would have earned had you continued to make payments over the full loan term.

SBI Personal Loan Pre Closing Charges

The bank staff told my sister that the pre-closure charge for SBI personal loans is typically 3% of the outstanding loan balance. But they also shared some exceptions to this rule. They told her that if you have taken out a Rent Plus personal loan, the pre-closure charge is only 1% of the outstanding loan balance.

They gave her a

:

• Fixed-rate personal loans: 3% of the outstanding loan balance

• Floating-rate personal loans: 3% of the outstanding loan balance

• Rent Plus personal loans: 1% of the outstanding loan balance

My sister wasn’t sure if she wanted to foreclose her loan after learning all these facts about foreclosure and knowing the SBI personal loan pre closing charges. So she decided to not foreclose her personal loan.

However, I would like to tell you that these

. After three years, there are no pre-closure charges.