It is really unwise. Once we are out of the current financial threat. Our next goal should be towards earning money, some extra money, like taking up some part-time job or increase the earning potential to repay the personal loans quickly. Pre closure ? Nearly 97% of the people forget this part. The best use of personal loans can be experienced only if you pre close your loans.

Pre closure gives you mental satisfaction and good social identity and better credit rating! At the time of sanctioning your loans the bank is likely to get pre signed, post dated checks towards the EMI. Most of us forget our duties after it. We can always pre close the loan and get the checks back. If you are not able to repay in full, you can close 75% of the amount and you can get the checks that are signed for the tail portion of the loan so that you will be left with a few more EMIs than originally designated. Slowly and steadily all of us can eat up the financial commitments to null value.

Though there may be negligible financial gain with this process there will be an increasing credibility and peace of mind to have a good sleep! By pre paying your personal loans you can pay just 5% extra money on the current outstanding at any point in time. There are banks that allow you to pre pay up to 25% to 30% of your outstanding amount with no extra money if you were a long time customer who has a good personal loans history or are chronologically older than 1 year or 2 years in the loans division.

This system is not there in all banks but certain banks offer this scheme. You can enquire if such deals are available when you sign your personal loans papers. By all means learn the art of pre paying loans and its benefits before you get the personal loans this pre paying will save you lot of headaches and time burn outs!

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