Preclosing your moneyview personal loan allows you to repay the outstanding balance before the end of the loan tenure, potentially saving on future interest payments. However, it's essential to understand the specific terms, eligibility criteria, and procedures involved to make an informed decision.
For instance, moneyview permits preclosure after a minimum number of EMIs have been paid, with the exact number depending on your loan tenure. Notably, moneyview does not levy any preclosure charges, making early repayment more accessible.
When preclosing a moneyview Personal Loan you are not required to pay any additional charges. This means you can repay your loan early without incurring additional fees. For more details reach out to the lender’s customer care team.
The preclosure is subject to certain conditions based on the loan tenure, as outlined below:
Loan Tenure |
Preclosure Eligibility |
Up to 6 months |
Not allowed |
7 to 18 months |
Allowed after 6 EMI payments |
Over 18 months |
Allowed after 12 EMI payments |
Also, before initiating the preclosure process, ensure you meet the following requirements as well:
No Outstanding Dues
Before requesting preclosure, ensure that all pending amounts are cleared. All EMIs must be fully paid up to the preclosure date. Any late fees, penalties, or bounced cheque charges must also be settled. The loan account should not have any disputed transactions or pending payments that could delay the closure process.
Loan Account Verification
Before proceeding with preclosure, it is advisable to review the loan account statement carefully. The total outstanding principal amount, any accrued interest until the preclosure date, and any applicable charges should be verified. Additionally, moneyview allows preclosure only after the eighth of each month.
Payment Method
The preclosure amount must be paid using approved methods such as NEFT, RTGS, UPI, or direct bank transfer. Be sure to check the acceptable payment methods of moneyview before initiating a preclosure.
To preclose your moneyview personal loan, follow these steps:
Check Eligibility: Ensure you have met the minimum EMI payment requirements based on your loan tenure
Contact Customer Support: Reach out to moneyview's customer support to inform them of your intent to preclose the loan and to obtain the exact outstanding amount
Obtain Preclosure Statement: Request a preclosure statement detailing the outstanding principal and any applicable interest up to the closure date
Make the Payment: Pay the total amount specified in the preclosure statement through the accepted payment methods
Obtain No Objection Certificate (NOC): After the payment is processed, request an NOC from moneyview as proof that the loan has been fully repaid and closed
If you wish to close your loan through the moneyview app, you can follow the instructions provided below:
If you meet the eligibility criteria, you can close your loan early through the app
The ‘Foreclose Loan’ option will become visible in the app once you qualify
Loan foreclosure is permitted only after the 8th of each month
Here are some pros and cons of foreclosing a moneyview Personal Loan that you should consider before opting for this facility:
Advantages:
Interest Savings: By preclosing the loan, you can save on future interest payments, reducing the overall cost of the loan
Debt-free Sooner: Eliminating the debt obligation ahead of schedule provides financial freedom and peace of mind
Improved Credit Score: Successfully closing a loan can have a positive impact on your credit score, reflecting responsible financial behaviour
Disadvantages:
Liquidity Impact: Utilising a large sum of money to preclose the loan may affect your liquidity and financial flexibility
- Opportunity Cost: The funds used for preclosure could have been invested elsewhere to earn returns, potentially leading to a loss of potential income
When considering preclosure, it is important to take certain precautions to avoid unnecessary financial or procedural complications. Evaluating these factors beforehand will help ensure a smooth and beneficial loan closure experience.
Calculate Net Savings
Before pre-closing a personal loan, assess whether the interest savings outweigh the costs. Preclosure reduces interest expenses, but it is important to compare this with potential investment returns you might forgo by using the funds for preclosure. If the preclosure charges are high or if the funds could generate better returns elsewhere, keeping the loan active while making additional part-payments may be a better strategy.
Understand the Process
Understanding the exact preclosure procedure is crucial to avoid any delays or misunderstandings. Each lender has specific requirements regarding preclosure timelines, eligibility conditions, and payment methods. MoneyView, for example, allows preclosure only after a minimum number of EMIs have been paid and requires the request to be submitted through the app or customer service. Missing any of these steps may result in delays or additional charges.
Check for Hidden Charges
While MoneyView does not levy preclosure charges, some lenders may include hidden fees such as foreclosure penalties, processing fees, or additional interest on the outstanding balance. Carefully reviewing the loan agreement and obtaining a preclosure statement from the lender will help identify any unexpected costs.
Ensure Full Payment is Made
To successfully close a loan, the entire outstanding balance, including any accrued interest until the closure date, must be cleared. Partial payments will not be considered a preclosure, and failure to pay the exact amount specified in the preclosure statement may lead to continued interest accumulation. Always verify the final amount and confirm the transaction with the lender.
Obtain Documentation
After preclosure, securing all necessary documents is essential to prevent future disputes. Key documents include the NOC, which serves as proof that the loan has been fully repaid, and a loan closure statement confirming a zero outstanding balance. Additionally, borrowers should monitor their credit reports to ensure that the loan is correctly marked as ‘Closed’.
Verify Credit Score Update
Loan preclosure should reflect accurately in credit reports maintained by agencies like CIBIL and Experian. It typically takes 30 to 45 days for the update to appear. If the status is not updated within this period, borrowers should raise a dispute with the lender and request them to report the closure to the credit bureaus.
Plan for Future Credit Needs
Preclosing a loan may impact future loan eligibility, especially if it reduces the borrower’s credit history length. If a borrower plans to take another personal loan or a credit card soon, maintaining an active credit account with regular EMI payments might be more beneficial than closing it early. Evaluating the long-term financial impact before making the preclosure decision is recommended.
Check Alternative Repayment Options
Instead of preclosing a loan, borrowers can consider making part-payments to reduce the principal balance. This approach lowers interest costs while keeping funds available for emergencies or investments. Restructuring EMIs to pay off the loan faster can also be a viable option if preclosure is not feasible.
Time the Preclosure Wisely
Choosing the right time for preclosure can enhance savings. For example, preclosing a loan early in the tenure, when interest charges are highest, leads to greater savings. On the other hand, if only a few EMIs are left, preclosure might not provide significant financial benefits. Evaluating the timing based on the loan amortisation schedule can help maximise savings.
For further queries or assistance, you can contact moneyview's customer care at:
Phone: 080 4569 2002
- E-mail ID: payments@moneyview.in (for loan repayment-related queries only)
