Wondering about the
IDFC personal loan lock in period
. IDFC FIRST Bank offers personal loans with various features and benefits, including the option to prepay the loan. However, there is typically a lock-in period associated with these loans.
What is the IDFC Locking Period for Personal Loan?
The IDFC personal loan locking period is the minimum duration for which the borrower must maintain the loan before they are allowed to make any prepayment or pre-closure. For IDFC personal loans, this lock-in period usually ranges from 6 to 12 months, depending on the loan agreement.
During the lock-in period, borrowers are not permitted to make any partial or full prepayment of the loan. This provision is in place to ensure that the bank recovers a portion of the interest costs associated with the loan.
After the lock-in period ends, borrowers can opt to prepay the loan either partially or fully. However, such prepayments may attract prepayment charges, which are usually a percentage of the outstanding principal amount.
These charges can vary based on the bank's policy and the specific terms agreed upon at the time of loan sanction.
The primary benefit of prepaying a personal loan after the lock-in period is the potential savings on interest payments. By reducing the principal amount sooner, borrowers can lower the overall interest cost.
However, it is crucial to carefully review the prepayment terms, including any associated charges, to ensure that the financial benefits outweigh the costs.
To initiate the prepayment process, borrowers typically need to submit a request to the bank and pay the outstanding dues along with any applicable charges. The bank will then update the loan account accordingly. This is all about the IDFC First Bank personal loan locking period.
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Authors Of The Question
What is the IDFC Personal Loan Lock in Period?
Kriti
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7 months
2024-07-31T13:08:34+00:00 2024-07-31T14:03:03+00:00Comment
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