The Aditya Birla personal loan locking period refers to the minimum duration during which the borrower cannot make any prepayment or pre-closure of the loan. The typical locking period is usually 6 months. Scroll down to learn more.
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What is Aditya Birla Personal Loan Lock in Period?
During this period, borrowers are restricted from settling the loan either partially or fully. This provision ensures that the financial institution recovers a portion of the interest costs associated with the loan.
After the locking period ends, borrowers can choose to prepay the loan. However, prepayment may incur additional charges, typically ranging from 2% to 4% of the outstanding principal amount, along with applicable taxes.
These charges are meant to compensate the lender for the loss of future interest income due to early repayment.
Prepaying a loan after the locking period can offer significant benefits, such as reducing the total interest payable over the loan tenure.
Borrowers can either make a full prepayment to close the loan or opt for partial prepayments to reduce the outstanding principal, thereby lowering the monthly EMI payments.
However, it is crucial to consider the prepayment charges and calculate whether the interest savings outweigh these costs.
To initiate the prepayment process, borrowers must notify the lender and settle the outstanding dues, including any prepayment penalties. The lender will then provide a No Objection Certificate (NOC) and update the loan account status to reflect the prepayment.
This is all about Aditya Birla personal loan locking period
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What is Aditya Birla Personal Loan Locking Period?
Manu
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8 months
2024-07-31T16:11:01+00:00 2025-02-11T14:37:41+00:00Comment
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