What happens if I foreclose my loan?
Table of Contents
- 1 What happens if I foreclose my loan?
- 2 How do you foreclose on a loan?
- 3 What is difference between foreclosure and preclosure?
- 4 What is the benefit of foreclosure of loan?
- 5 What is the foreclosure charges for Citibank Personal Loan?
- 6 How do I check my Citibank Personal Loan outstanding balance?
- 7 How is foreclosure amount calculated?
- 8 When can a lender foreclose?
What happens if I foreclose my loan?
Foreclosing from the Bank Side: The bank will be forced to auction the property on which borrower had taken the loan. By selling the property, bank will foreclose the loan when it gets the money from auctioned property, as the borrower is not financially sound enough to pay back the loan amount.
How do you foreclose on a loan?
Foreclosure Procedure – a step by step complete guide
- Step 1 – Find the nearest branch.
- Step 2 – Submit an application.
- Step 3 – Submit all the required documents.
- Step 4 – Pre payment of the outstanding loan.
- Step 5 – Receipt of documents.
- Step 6 – Inform the credit rating agencies.
How to foreclose citibank personal loan?
You need to call Citibank customer care at 1860 210 2484 in order to pre-close the loan agreement and select the loan options and personal loan options under it, as prescribed. Tell them that you need to pre-close the loan and they’ll give you an estimate of the amount of the loan you need to pay back.
What is difference between foreclosure and preclosure?
Prepayment is when a borrower prepays a part of the car loan in advance whereas preclosure/foreclosure is when whole of the car loan is paid before the end of the loan tenure. Prepayment charges and foreclosure charges differ from bank to bank.
What is the benefit of foreclosure of loan?
Foreclosure is a legal process where the borrower repays his debt in full before the term of the loan ends. This helps them in significantly reducing the interest liability and closing down the loan account well before its tenure.
Can bank charge foreclosure charges?
In this connection, it is clarified that banks shall not charge foreclosure charges/ pre-payment penalties on any floating rate term loan sanctioned, for purposes other than business, to individual borrowers with or without co-obligant(s).
What is the foreclosure charges for Citibank Personal Loan?
CitiBank Personal Loan Pre-Closure Charges
| Type of foreclosure | Fees Charged |
|---|---|
| Part pre-payment | Up to 4\% of the outstanding balance |
| Full pre-payment | Up to 4\% of the outstanding balance |
How do I check my Citibank Personal Loan outstanding balance?
If you’re an existing Citibank Online Banking customer, you can view your current loan balance online, however please be aware that this may not be your final settlement figure. Alternatively, to find out the outstanding balance on your Personal Loan just call our 24×7 CitiPhone helpline.
Is prepayment and foreclosure same?
Is there a difference between Prepayment and Foreclosure? Prepayment is when a borrower prepays a part of the car loan in advance whereas preclosure/foreclosure is when whole of the car loan is paid before the end of the loan tenure.
How is foreclosure amount calculated?
It is the month in which you repay the full loan amount in advance. For e.g. if the tenor of your loan is 5 years (60 months) and you plan to repay the total loan left after 3 years 4 months (40th month), then that month (the aforementioned 40th month) is your foreclosure month.
When can a lender foreclose?
To foreclose your personal loan, you have to meet the terms and conditions as set by the lender. Most lenders allow pre-closures only after a certain period, say 6-12 months of continuous payment of the EMI.