prepayment penalty has been waived off by some banks on only fixed type loan. it is still being collected. Check this first as it will make you so frustrated when you want to preclose the loan. Also remember to photocopy all the Post Dated cheques (PDC's) which you will give to the bank. Once the loan is preclosed ask for returning all the PDC's. Gauranteeing you that they will not give you one PDC saying that it is lost or you didn't give us this number cheque. They keep it if they find any amount if they feel they've failed to collect then they will deposit it quietly. Next collect your loan closure letter if preclosed or closed on time. If car loan then collect NOC and car papers. For Home loan collect all home papers and NOC. You have to be very alert with them. Don't assume things. Clarify whenever you have doubt and try to take acknowledgement or complaint numbers whenever you have issues as it will help you. And after all this check with CIBIL whether the loan closure has been reported there or not. Many banks don't report it. In that case submit your NOC and loan closure letter copy to CIBIL and they will make the changes in your profile.
Re: nOT wORTH
by kiran kumar on Apr 25, 2013 04:15 PM
Absolutely. It is like having a title "Things to consider before you eat" and article is 1. Are you hungry 2. Is the thing in your plate edible 3. Is the food fresh 4. Are you allowed to eat 5. Stop eating when your stomach is full.
Only (relatively) new point here is on CIBIL score, and the fact that every rejected loan pulls the score further.
The whole concept of credit score is to help bankers identify the bakaras out there whose lack of knowledge or care for money can be en-cashed. There are two kinds of people that credit score wants to target. One, people who are financially in a mess and have very less chances of servicing any advance given to them. Two, people who are prudent about money, conservative in spending and do not want banks to take away his/her hard earned money in the name of thin print or misselling
