Loan closure marks the successful completion of loan repayment, ensuring no outstanding dues remain. It involves paying the final EMI or any remaining amount in full and receiving a No Objection Certificate (NOC) from the lender. Proper loan closure improves credit scores and ensures financial clarity. To complete the process, certain documents are required, and multiple methods like online, offline, or early closure options are available. Properly handling this ensures no legal or financial issues arise later. Understanding the right process and collecting the necessary paperwork helps in seamless loan closure.
Documents required for loan closure
When closing a loan, certain documents must be submitted to ensure a smooth process. These documents typically include:
- Loan account statement: Showing the complete payment history.
- Final EMI receipt: Proof of final loan payment.
- No Objection Certificate (NOC): Issued by the lender confirming full payment.
- Loan agreement: For reference and lender confirmation.
- Property papers (for home loans): To get back from the lender if kept as collateral.
- Identity proof: Necessary for verification.
Ensuring all documents are collected helps avoid any complications during the loan closure. It's essential to store them safely for future reference.
Methods to close a loan
Loans can be closed through several methods depending on individual preferences and loan type:
- Online closure: Many lenders offer online portals where you can make the final payment and request NOC.
- Offline closure: Visit the bank or lender in person, clear overdue EMIs, and collect the NOC.
- Prepayment: Pay the outstanding loan amount before the tenure ends. Some lenders may charge a prepayment fee.
- Auto-debit closure: The final EMI is deducted automatically, and the loan closes without manual intervention.
Before closing the loan, ensure there are no hidden fees, and confirm the receipt of all required documents from the lender.
Types of loan closure
Loan closure can be done through two primary methods: pre-closure and regular closure. Each method depends on the borrower’s financial situation and the loan repayment status. Understanding the right type ensures a smoother process and may even save on interest costs. Choosing the correct method should align with the loan's terms and conditions to avoid penalties or hidden charges.
Pre-closure
Pre-closure occurs when a borrower decides to repay the entire loan amount before the scheduled tenure ends. This method can reduce the interest burden, especially for long-term loans. However, lenders may charge a prepayment or foreclosure fee. It's essential to review the loan agreement for any such charges before opting for pre-closure. Some financial institutions offer online options for pre-closure, while others may require a visit to the branch. Learn more about the process of Loan Foreclosure.
Pre-closure is ideal for those with surplus funds and looking to minimise their debt burden early.
Regular closure
Regular closure refers to repaying the loan in full as per the agreed schedule, usually through equated monthly instalments (EMIs). The loan is considered fully closed when the borrower has paid the last EMI, and no outstanding balance remains. Upon regular closure, it’s crucial to collect a No Objection Certificate (NOC) and other relevant documents from the lender. Regular closure typically has no penalties or extra charges, making it a straightforward option.
Proper planning for loan repayment ensures timely payments and avoids any complications during regular closure.
How to close a loan in Bajaj Finserv?
Bajaj Finserv provides both online and offline methods to close a loan. The process involves clearing all outstanding dues, obtaining necessary documents like the No Dues Certificate and No Objection Certificate (NOC), and ensuring the loan is officially closed. Online methods are convenient, allowing borrowers to close loans from anywhere, while offline methods provide in-person support at branches or through customer care. Selecting the right method depends on the borrower's convenience and the type of loan they have.
Online methods for loan closure
Closing a loan online through your Bajaj Finance account is quick and straightforward. Follow these steps:
- Log in to your account using your registered mobile number on the Bajaj Finserv website or mobile app.
- Navigate to the loan section to view outstanding loan details.
- Select the option for loan closure and review the final outstanding amount.
- Make the full and final payment through the online payment gateway.
- After successful payment, request the No Objection Certificate (NOC) and No Dues Certificate.
Ensure to save these documents for future reference, as they serve as proof of loan closure.
How to close a loan offline?
Customer care support
To close a loan offline, Bajaj Finserv offers customer care support. You can call the customer care number and request assistance with loan closure. A customer service representative will guide you through the process, including the final amount payable and any necessary paperwork. Once the final payment is made through the available payment modes, you will be able to request the required documents like the No Dues Certificate and No Objection Certificate (NOC). Customer care can provide guidance on any further actions needed to ensure a successful loan closure.
Visit branch
Visiting a Bajaj Finserv branch is another offline method to close a loan. At the branch, you can meet a representative who will assist you with the loan closure process. Bring your identity proof and details about the loan to facilitate the process. The representative will provide the final outstanding amount for closure. After making the payment at the branch, ensure to collect important documents like the No Objection Certificate (NOC) and No Dues Certificate. Visiting a branch can be helpful for those who prefer in-person assistance and direct support during the closure.
Documents needed for loan closure
When closing a loan, several documents are required to finalise the process:
- Payment receipt: Proof of the final payment made to clear the loan.
- No dues certificate: Issued by the lender to confirm there are no outstanding amounts.
- No objection certificate (NOC): Confirms that the lender has no objection to the borrower and the loan is fully closed.
- These documents are crucial to avoid future legal or financial complications, and borrowers should ensure they are received and stored safely.
Conclusion
In conclusion, closing a loan, whether online or offline, is a vital step in ensuring all financial obligations are met. Bajaj Finserv offers convenient options for both methods, allowing borrowers to choose according to their preference. It’s essential to follow the correct process, make the final payment, and obtain key documents like the No Dues Certificate and No Objection Certificate (NOC). Proper loan closure not only clears liabilities but also positively impacts credit scores and ensures peace of mind. Always keep the necessary documents for future reference and to avoid any issues later.
