How to Get Personal Loan Closure Letter Online

How to Get Personal Loan Closure Letter Online

Read our detailed guide to know what is a personal loan closure letter and how to get it online.
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  • Planning to close your loan early?  A personal loan closure letter (also called foreclosure letter) is a document showing the total amount needed to close your loan. It includes the outstanding amount as of your chosen closure date, along with fees and charges. 


    Why this matters: This letter helps you understand exactly how much money you need if you want to close your personal loan early. It serves as a detailed guide, giving you clarity on the financial aspects of ending your loan.


    If you are looking to get a loan, check your pre-approved loan offer in just 2 steps and get funds in 24 hours*.

Different types of personal loan closures

Closing a personal loan means completing repayment and getting a closure letter from your lender. Here are the different types:

  • Regular closure: This happens when you pay all EMIs as per your loan period. The lender gives you a closure letter confirming full repayment.
  • Pre-closure: You repay the remaining amount before your loan period ends, which saves on interest costs. You need to apply for this process.
  • Part-payment closure: You pay a big amount towards your loan, reducing your EMI burden, but the loan continues until full repayment.
  • Settlement closure: When you negotiate a reduced payout due to money problems. This affects your credit score and future loan chances.

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How to close personal loan account?

  • Check eligibility for closure

    Make sure you meet your lender's rules for loan closure. Usually, lenders allow closure only after paying a set number of EMIs. Check if you're not in any pre-payment lock-in period and review any penalties in your loan agreement.

  • Request a foreclosure statement

    Contact your lender to ask for a foreclosure statement showing the remaining amount and extra charges. This statement is valid for a limited time, so close your loan within this period.

  • Arrange for the required payment

    Based on the statement, arrange the needed money to close your loan account. Lenders may accept online transfers, checks, or demand drafts.

  • Submit documents for verification

    Provide ID proof, loan account details, and other documents your lender asks for. Complete and sign required foreclosure forms.


    Pro-tip: Keep copies of all submitted documents for your records.

  • Make the payment

    Pay as per the amount in your foreclosure statement. Ask for a receipt as proof of payment and check if any final paperwork is needed.

  • Obtain the loan closure certificate

    Once payment clears, ask for a loan closure or 'No Objection Certificate' (NOC) from your lender. This confirms your loan is closed with no remaining dues.

  • Check your credit report

    After closing the loan, check your credit report to confirm the loan status shows "closed" or "paid." Report any errors to the credit bureau or lender.

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List of various sections of personal loan closure letter

  • Basic information

    This has essential details like your loan account number, loan amount, and disbursal date.

  • Fees and charges

    Information about interest amounts, bounce charges (if any), and annual maintenance charges (AMC) for certain Flexi Loan types. Check our personal loan fees and charges on our website.

  • Total dues

    The total outstanding loan amount needed for foreclosure. This gives you a complete view of what you owe on your chosen closure date.

  • Total amount paid

    Details of all payments made towards your loan so far, showing transparency on amounts paid.

  • Foreclosure charges

    When choosing loan foreclosure, you pay additional charges. This section shows these foreclosure charges clearly.

  • Terms and conditions

    General terms and conditions for loan foreclosure. Read this section carefully before deciding to foreclose your loan.

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Why is a loan closure letter important?

  • Legal proof

    Confirms complete loan repayment, protecting you from wrongful claims

  • Prevents disputes

    Ensures no pending dues or extra charges remain

  • Improves credit score

    A successfully closed loan enhances your creditworthiness

  • Helps future loans

    Lenders may require closure letters for new credit applications

How to download your closure letter online

If you have an ongoing Bajaj Finserv Personal Loan and want to close it early, download the closure letter from our customer portal:

  1. Go to our customer portal on our website
  2. Enter your registered mobile number and OTP to sign in
  3. Verify your details by entering your date of birth and proceed
  4. Select the loan account for which you want the foreclosure letter
  5. Click on 'Foreclosure Letter' to download it
     

Once you know the amount needed for your personal loan foreclosure, use our online payment services to make the payment.

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Key offerings: 3 loan types

  • Flexi Hybrid Term Loan
  • Flexi Term (Dropline) Loan
  • Term Loan

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    You can pay interest-only EMIs for up to 36 months, after which, the EMI will consist of both, the principal and the interest. EMI is applicable only on the withdrawn amount.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest on the loan amount you withdraw.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Amount disbursed in one go
    The entire loan amount is disbursed at the start.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest.

  • Flexi facility charges
    No Flexi facility charges.

Personal loan interest rate and applicable charges

Type of fee

Applicable charges

Rate of interest per annum

10% to 30% p.a.

Processing fees

Up to 3.93% of the loan amount (inclusive of applicable taxes).

Flexi Facility Charge

Term Loan – Not applicable

Flexi Loans –Up To Rs 1,999 To Up To Rs 18,999/- (Inclusive Of Applicable Taxes)

Will be deducted upfront from loan amount.

Bounce charges

Rs. 700 to Rs. 1,200/- per bounce

“Bounce charges” shall mean charges for (i) dishonor of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonor of payment mandate or non-registration of the payment mandate or any other reason.

Part-prepayment charges

Full Pre-payment:

  • Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment

  • Flexi Term (Dropline) Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

  • Flexi Hybrid Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

Part Pre-payment

  • Up to 4.72% (Inclusive of applicable taxes) of the principal amount of Loan prepaid on the date of such part Pre-Payment.

  • Not Applicable for Flexi Term (Dropline) Loan and Flexi Hybrid Term Loan.

Penal charge

Delay in payment of instalment(s) shall attract Penal Charge at the rate of up to 36% per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount.

Stamp duty (as per respective state)

Payable as per state laws and deducted upfront from loan amount.

Annual maintenance charges

Term Loan: Not applicable

Flexi Term (Dropline) Loan:

Up to 0.295% (Inclusive of applicable taxes) of the Dropline limit (as per the repayment schedule) on the date of levy of such charges.


Flexi Hybrid Term Loan:

Up to 0.472% (Inclusive Of Applicable Taxes) Of The Dropline Limit During Initial Tenure. Up to 0.295% (Inclusive Of Applicable Taxes) Of Dropline Limit During Subsequent Tenure

Credit guarantee scheme feeUp to 1.18% p.a. (pro-rated daily till 31st March) (inclusive of all applicable taxes) of the loan amount
Credit guarantee scheme renewal feeUp to 1.18% p.a. (inclusive of all applicable taxes) on the outstanding loan amount as on April 01 of the subsequent Financial Year.
*Renewal Fee to be collected only for 3 subsequent financial years.
 
**If the Remaining Tenure is less than 12 months, the CG Fee in subsequent years shall be charged prorated.

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Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.
For customer support, call Personal Loan IVR: 7757 000 000