Most banks offer an option known as prepayment for loans so that one can close the loan sooner than the tenure opted for. This helps one get rid of one financial burden if he/she can do so. So, if you want to prepay your two-wheeler loan, there is a certain procedure to follow with your lender.
1. Check the lock-in period:
Most loans have a lock-in period that can range from 3 months to 6 months or more in some cases. During the lock-in period, it is not possible to prepay your loan to close it. So, check if you have completed your lock-in period before you try to prepay your two-wheeler loan.
2. Call customer care:
The next step is to call customer care to get the outstanding amount that is due to be paid for your two-wheeler loan. You can get the customer care number from your lender’s website and then contact them. They will check your loan details and tell you how much is needed to be paid for the same.
3. Prepayment charges:
Lenders charge a certain amount as a prepayment charge for pre-closure of loans. You will need to find out how much is being charged by your lender as a prepayment charge and pay the same so that you can prepay your loan to close it soon.
4. Acknowledge their email sent:
Your lender will then send you an email that consists of all your prepayment information. It will have your loan account number, outstanding amount to be paid and your prepayment charges. You will need to acknowledge this email and confirm that you will prepay your loan to close it.
You can then pay the outstanding amount and the pre-closure charge by cheque or a DD with the loan account number mentioned or you can visit your lender’s branch and make an online payment with help of the bank executives present there.
You will then receive a notification from your lender saying that your loan has been paid. You can crosscheck all the details to see if the right specifics have been mentioned regarding your loan closure.
7. NOC certificate:
Finally, you must make sure that you collect the NOC certificate which is the ‘no due certificate’ from your lender. This is the only proof you have that you have closed your loan with no dues pending.
Start your two-wheeler loan application process right here with CreditMantri.