Part Payment v/s Pre-closure

When it comes to payment of personal loans there are 2 scenarios of making payments other than timely payment as part payment and pre-closure.

In this blog, we will discuss the situations in which we will make payment in the above-mentioned ways and when are these terms used.

Part-payment and pre-closure are the two types of loan payment techniques availed by the customers to reduce the time taken to pay the loan and to reduce the excess interest.

It is very important to know that the period of making the payment is the first and foremost factor to be considered by both lenders and receivers of loans. The parties must cautiously choose whether or not to lend or receive the loan based on how effectively the payment can be made and in how much less time.

Both sides of the lender, as well as the receiver, play an important role when it comes to the repayment of the loan. When any of them fail to maintain transparency of capacity to repay and to receive with a lack of trust the loan transactions show a cascading effect on the interest and principal amounts thus increasing the duration of repayment.

Let us now know what is Part payment and Pre-closure to understand them better while you decide to choose one in the future.

What is Part payment and how useful is it?

The term part payment means or is used when a person having a personal loan chooses to pay a lump sum amount of EMIs e.g. Ranging from 2-5 EMIs at a time thus reducing the time required to repay the loan.

Part-payment facility is not available with all the banks and FIs so when it comes to choosing a bank for a personal loan you must consider this factor before applying.

When you choose to make part payment there are several benefits you get with it such as;

  • Firstly, you pay off the loan early or before the completion of tenure.
  • This further enables you to reduce the interest charged on a loan for a credit period.
  • And the best part is that there are no or very minimal charges applied for part payments.

We at 99Creds have made available the facility of part payment for our customers with the help of banks that are affiliated with us. So, while opting for a personal loan with us be rest assured about the repayment policies offered by us.

Now let us know what is Pre-closure.

Suppose you have taken a personal loan from some bank for several years as per the loan agreement because of its advantage of quick disbursal. And so now you decide to make the whole payment of your loan before the end of its period.

But, your bank policies may make it difficult for you to repay on or before time. So, this is when you will feel frustrated for not being able to settle your liabilities on time.

At this point, 99creds comes to your rescue as we offer our customers a pre-closure facility.

Pre-closure is when you pay your entire loan amount in advance or before time i.e. before the end of the loan tenure.

Pre-closure in simple terms is that facility that helps you get rid of your liability well in advance and settle your liability thus releasing a burden on you.

When you make the payment of your loan in full before the time it eventually helps you to reduce the time for which you availed the credit and the interest incurred on it. Thus, pre-closure is the settlement of your loan in advance.

99Creds offers its loan customers this facility along with the lowest possible processing charges on the same.

There are several banks that charge in excess for this process and sometimes they don’t provide such a facility to their customers.

Hence while choosing loans and other credit facilities it is always advisable to choose the right one before even applying.

Banks that are associated with 99Creds are the top banks in India and have the best deals possible for loans.

So, what are you waiting for? Come and visit 99Cred today to get the best solutions to all your financial problems!