What is the difference between Part payment, Pre-payment and Pre-closure? Are there any charges related to this?
Part Payment: A part-payment amount is less than the full loan principal amount and this payment is made before the loan amount becomes due.
Pre-Payment: This occurs when you pay off your personal loan in part before it becomes due as per the EMI schedule. The pre-payment amount may or may not be equal to the total due amount. Pre-payment charge is 4% of the EMI paid in advance
Pre-closure: Pre-closure refers to completely paying off a personal loan before the loan tenure has ended. Just like pre-payment charge, pre-closure charges is 4% of the loan amount outstanding.