InCred Personal Loan Pre-closure Charges

Foreclosure charges apply on personal loans when customers seek to re-pay debts before the close of term as agreed with the lender. In most markets, regulators often issue guidelines that govern foreclosure charges. In terms of pre-payment charges, InCred drives compliance with regulatory requirements when customers pre-pay outstanding loan amounts.

InCred offers its customers short-term, unsecured personal loans ranging in value from 50,000 INR to 7.5 lakhs INR. The firm's operational team of seasoned bankers and professionals from India's burgeoning financial services sector differentiates itself by creating affordable EMIs for personal loans. However, InCred does charge a certain fee when customers wish to pre-pay their outstanding loan amounts. These charges are in line with recommendations issued by market regulators.

Customers of personal loan products can foreclose outstanding amounts through Post Dated Cheques (PDCs), Electronic Clearance Service (ECS) and/or National Automated Clearing House Mandate (NACH) or Standing Instructions (SI). InCred mandates that a borrower may repay the entire outstanding balance of a personal loan by giving 15 days advance notice to the lender. InCred will calculate prepayment amounts on a reducing basis at the rate of interest specified in the Sanction Letter. In addition, the lender shall charge pre-payment charges that remain in line with information provided to borrowers at the time of granting the personal loan. Further, InCred reserves the right to levy appropriate prepayment charges, interest, additional interest, delayed payment charges, and all other charges and fees payable by the customer.

Conclusion

InCred remains the provider of choice for customers seeking a range of modern financial services. The firm aims to pursue best practices in the interests of protecting customers’ rights, while implementing and growing an outstanding service proposition.