Taking a Personal Loan can be a smart financial decision when you need urgent funds for travel, medical emergencies, education, home renovation, or even debt consolidation. However, what many people overlook is the process of closing a personal loan. At Bluray Global Solutions, we believe that understanding the closure process is just as important as applying for the loan itself.
In this blog, we’ll walk you through everything you need to know about personal loan closure — from types of closures, required documents, benefits, to common mistakes to avoid. Whether you’re nearing the end of your repayment period or considering foreclosing your loan early, this guide is your one-stop resource.
Personal loan closure refers to the process of settling your loan account after all dues have been cleared. When your loan is fully repaid—either by completing all EMIs or by prepaying the outstanding amount—you must formally close the loan account with the lender.
There are two types of personal loan closures:
Here is a step-by-step guide to closing your personal loan smoothly:
Before initiating the closure, contact your lender or log in to your loan account to verify the exact outstanding balance.
If you are pre-closing the loan, request a pre-closure quote. This will include the remaining principal and any applicable prepayment charges.
Visit your lender’s nearest branch or request digital closure assistance, depending on their process. Carry all necessary documents (more on this below).
Pay the full outstanding amount. For foreclosure, this might include additional charges as mentioned in your loan agreement.
Once the payment is made, your lender will issue a No Objection Certificate (NOC) or Loan Closure Letter. This is an important document that confirms you have repaid the loan in full.
Ensure your lender reports the closure to credit bureaus like CIBIL. This will reflect positively on your credit score. You can also request a credit report update after 30–45 days.
While regular closure is the standard route, foreclosure can save you money on interest payments if you have surplus funds. However, some lenders may charge foreclosure fees (typically 2–5% of the outstanding principal).
At Bluray Global Solutions, we help you understand these options clearly so you can choose what's best for your financial situation.
Many borrowers assume that paying the last EMI is the end of the loan, but formal closure brings several benefits:
When closing a personal loan, beware of these common pitfalls:
Even if you've paid all dues, not collecting the NOC can cause issues later, especially during credit checks.
Always check for prepayment fees before deciding to foreclose.
Ensure the loan is marked as “Closed” in your credit report, not “Settled” or “Written-off.”
Always keep a copy of the loan closure letter and payment receipts for future reference.
At Bluray Global Solutions, we’re not just focused on loan disbursement — we also assist you through loan servicing and closure.
Here’s how we help:
We believe in financial clarity, not just financial support.
A personal loan may provide financial relief during critical moments, but closing it properly is essential to avoid future hassles and enhance your creditworthiness. Whether you're finishing your EMI journey or prepaying early, the process must be handled diligently.
At Bluray Global Solutions, we are committed to making every step of your loan experience — from disbursal to closure — easy, transparent, and beneficial.
Need help closing your personal loan?
📞 Contact us today!