I am thinking of paying the loan amount before the loan tenure.
I had taken a loan few days back and now I am thinking of paying the entire amount before the due date.Is loan pre-closure a good option?
If you pay the loan before the due date,you can reduce the loan tenure and also the interest.
But, lenders charge a specific fee for loan pre-closure to recover some interest that will be lost in the process.
You can either go for full pre-closure or partial pre-closure.
If you do the full loan pre-closure, you will save on the interest,and if you go for partial the EMIs also will be reduced along with the interest.
So make your decision wisely and only if there are enough funds with you to go for pre-closure.