Preclosing your mPokket personal loan allows you to repay the outstanding balance before the scheduled end of the loan tenure. This proactive approach can lead to significant interest savings and provide financial freedom sooner than anticipated. However, it's essential to understand the associated terms, charges, and procedures to make an informed decision.
Before initiating the preclosure process, ensure you meet the following criteria:
Minimum Tenure Completion
mPokket may require borrowers to complete a minimum tenure before allowing preclosure. It's essential to review your personal loan agreement to determine if such a condition applies
No Outstanding Dues
All pending dues, including EMIs, late payment fees, or penalties, must be cleared before proceeding with preclosure
Formal Request
Submit a formal request to mPokket expressing your intention to preclose the personal loan
To preclose your mPokket personal loan, follow these steps:
Review Your Loan Agreement
Understand the terms related to preclosure, including any applicable charges and conditions
Contact mPokket Customer Support
Reach out to mPokket's customer service to inform them of your intent to preclose the loan. Also, cross check the exact outstanding amount and applicable charges before applying for a foreclosure.
Obtain a Preclosure Statement
Request a statement detailing the outstanding principal, accrued interest, and any preclosure charges
Make the Payment
Pay the total amount specified in the preclosure statement through the accepted payment methods
Confirm Loan Closure
After the payment is processed, ensure that mPokket provides confirmation of loan closure
Here are some benefits which you can enjoy by applying for a mPokket Personal Loan preclosure:
Interest Savings
By repaying the loan early, you can save on the interest that would have accrued over the remaining tenure
Improved Credit Score
Successfully closing a loan ahead of schedule can positively impact your credit score, reflecting financial responsibility
Debt-free Sooner
Eliminating debt obligations ahead of schedule provides financial freedom and peace of mind
Enhanced Loan Eligibility
Clearing existing debts can improve your eligibility for future loans, as lenders often prefer applicants with lower existing liabilities
Before you opt for a mPokket loan foreclosure, here are some probable disadvantages that you should consider to make a wise financial decision:
Preclosure Charges
The 3% prepayment charge on the remaining loan balance can offset some of the interest savings
Impact on Liquidity
Allocating a lump sum for preclosure might affect your immediate financial liquidity, potentially limiting funds for other needs or investments
Opportunity Cost
The funds used for preclosure could have been invested elsewhere to earn returns, possibly exceeding the interest saved from early loan repayment
Potential Credit Score Impact
While paying off debt can improve your credit score, closing a loan account may temporarily reduce your credit mix, which could slightly impact your score
Here are some things to keep in mind when applying for a foreclosure to ensure a smooth process:
Calculate Savings
Assess whether the interest savings outweigh the preclosure charges and any potential returns from alternative investments
Check the Process
Ensure you understand the preclosure process thoroughly to avoid any delays
Receive the Documents
After preclosure, secure all necessary documents, such as a loan closure confirmation, to confirm the loan has been fully repaid
Monitor Credit Report
Check your credit report post-preclosure to ensure the loan closure is accurately reflected, maintaining your credit health
Maintain Emergency Funds
Avoid depleting your emergency savings for preclosure; ensure you have sufficient funds to cover unforeseen expenses
For further queries or assistance, you can contact mPokket's customer care at:
Phone No: 033- 6645 2400 (Monday to Saturday - 9 am to 7 pm)
E-mail ID: support@mpokket.com
Address: PS Srijan Corporate Park, Tower 1, 12th Floor, Unit No. - 1204, 2, EP & GP, Sector V, Bidhannagar, Kolkata, West Bengal 700091
