YES Bank Personal Loan Preclosure

Closing your YES Bank personal loan before the scheduled tenure can help reduce interest costs. However, preclosure is subject to specific conditions. You must complete a minimum number of EMIs before applying for preclosure. 

Additionally, charges are based on the tenure completed, and a preclosure fee applies. There may also be a cap on the maximum amount you can prepay. Understanding these terms in advance can help you plan your loan repayment efficiently.

YES Bank allows preclosure of personal loans after completing 12 EMIs. However, foreclosure charges vary based on the number of months completed from the date of disbursal. 

Here is a detailed breakdown of the applicable YES Bank Personal Loan preclosure charges:

Disclaimer: Interest rates and other charges are subject to change. Please check with the lender before applying.

Before preclosing your YES Bank personal loan, you must meet specific requirements:

• Minimum EMI Completion

You must have paid at least 12 EMIs before applying for preclosure

• Preclosure Charges

Foreclosure charges apply based on the number of months completed from the disbursal date

• Outstanding Balance Payment

You must clear the total outstanding loan amount, including any applicable preclosure fees

• Loan Account Verification

Ensure all loan-related documents are in order before requesting foreclosure

• Branch Visit Requirement

Preclosure requests must be submitted at a YES Bank loan service centre

You can foreclose your YES Bank personal loan by visiting a loan centre and following these steps:

1. Visit the nearest YES Bank loan centre near you

2. Submit a preclosure request to the bank and provide the required documents, such as:

• Loan account number, loan approval letter, and account statement

• Aadhaar card, PAN card, passport, or other government-issued ID

3. Clear the outstanding balance and applicable charges

4. Collect the No Dues Certificate (NDC) as proof of repayment

There are several advantages of pre-closing a personal loan. However, it is important to understand the disadvantages as well to make informed decisions.

Here are some points you need to consider:

Advantages

• Preclosing your loan reduces the total interest paid

• Paying off the loan early may boost your credit score

• Eliminates monthly EMI payments, freeing up funds for other expenses

• Improves financial eligibility for future credit needs

Disadvantages

• Lenders impose foreclosure charges based on the loan tenure

• Using savings for preclosure may reduce emergency funds

• If most interest is already paid, preclosing may not offer significant savings

When you decide to preclose your loan, there are several factors that you should consider, such as understanding the foreclosure charges, or having clarity on the total outstanding amount.

Here’s a quick checklist you can follow:

• Check Preclosure Charges

Understand the applicable foreclosure charges based on your repayment tenure

• Verify Outstanding Balance

Get the exact personal loan amount payable, including any charges

• Ensure Sufficient Funds

Avoid exhausting emergency savings when preclosing your loan

• Collect Loan Closure Documents

Obtain a Loan Closure Certificate and No Dues Certificate (NDC) for future reference

• Confirm Credit Report Update

Ensure YES Bank updates your loan status with credit bureaus