Closing a personal loan is a crucial financial decision, and Axis Bank provides a structured process for loan foreclosure. If you have an ongoing personal loan with Axis Bank and want to foreclose it, this guide will help you navigate the process efficiently.
Step 1: Visit the Nearest Axis Bank Branch
To initiate the foreclosure process, you must visit your nearest Axis Bank branch. Carry a written application stating your request for a foreclosure statement. The bank staff will then forward your application to the loan center via email.
Step 2: Obtain the Foreclosure Statement
Once the loan center receives your request, they will process it, and within 24 hours, you will receive the foreclosure statement. This document outlines the outstanding amount, including any applicable charges for early loan closure.
Step 3: Payment of the Outstanding Loan Amount
After receiving the foreclosure statement, you need to make the payment to close your loan. The payment options vary based on whether you hold an account with Axis Bank:
Existing Axis Bank Account Holders: You can issue a cheque from your Axis Bank account.
Non-Axis Bank Account Holders: You need to provide a cheque from your other bank account. Axis Bank will process this cheque through clearing.
Step 4: Submitting Required Documents
To proceed with the foreclosure, you must submit the following documents:
Duly filled Customer Request Form (CRF)
PAN Card Copy
Aadhar Card Copy
The bank staff will verify your documents and process your request accordingly.
Step 5: Loan Closure Processing Time
The loan closure process takes approximately two weekends to reflect in the system. During this period, the bank ensures that all outstanding dues are cleared, and your loan account is officially closed.
Step 6: Receiving the No Objection Certificate (NOC)
Once your loan is successfully closed, Axis Bank issues a No Objection Certificate (NOC) as proof of loan closure. You can obtain the NOC through the following methods:
Axis Bank Account Holders: You can download the NOC via the Axis Bank Mobile Banking application.
Non-Axis Bank Account Holders: You can request the NOC from the branch. The bank staff will fill out a Customer Request Form (CRF) and arrange for the NOC to be sent to you within three working days.
Courier Service: If you prefer, the NOC can be sent to your registered mailing address.
Important Note on EMI Deductions and Timing
If your EMI due date is on the 5th of January 2025, you can apply for foreclosure only after this EMI has been deducted. The adjustment process will take two weekends. After this period, you will be eligible to receive the NOC.
Final Thoughts
Foreclosing your Axis Bank personal loan is a straightforward process if you follow the right steps. Ensure you have all the required documents and make the necessary payments on time to avoid any delays. By completing the foreclosure process efficiently, you can close your loan account and receive your NOC hassle-free.
If you are considering pre-closing your loan, check with the bank about any prepayment charges and plan accordingly. Always keep copies of all documents submitted and received for future reference.
By following this step-by-step guide, you can smoothly close your personal loan with Axis Bank and secure financial peace of mind.
Here are 10 frequently asked questions (FAQs) related to closing a personal loan at Axis Bank:
1. What is loan foreclosure, and how does it work in Axis Bank?
Loan foreclosure means paying off the entire outstanding loan amount before the loan tenure ends. In Axis Bank, you need to request a foreclosure statement, pay the remaining balance, and submit required documents to close the loan.
2. How can I request a foreclosure statement from Axis Bank?
You must visit your nearest Axis Bank branch and submit a written application requesting a foreclosure statement. The bank will process your request, and you will receive the statement within 24 hours.
3. Are there any foreclosure charges applicable on my personal loan?
Foreclosure charges may vary based on your loan agreement. It is advisable to check with Axis Bank regarding any prepayment penalties or charges before proceeding.
4. What payment methods are accepted for loan foreclosure?
Axis Bank accepts foreclosure payments via cheque. If you have an Axis Bank account, you can issue a cheque from it. Otherwise, you must provide a cheque from another bank account.
5. What documents are required for personal loan closure?
You need to submit a duly filled Customer Request Form (CRF), a copy of your PAN card, and a copy of your Aadhaar card.
6. How long does it take to process the loan closure?
The loan closure process typically takes two weekends to reflect in the bank’s system. After this, your loan is considered officially closed.
7. How can I obtain the No Objection Certificate (NOC) after closing my loan?
Axis Bank provides the NOC through different methods:
- If you have an Axis Bank account, you can download the NOC via the Axis Bank Mobile Banking app.
- If you do not have an Axis Bank account, you can request it at the branch, and the bank will issue it within three working days.
- Alternatively, the NOC can be sent to your registered mailing address via courier.
8. Can I foreclose my loan before the EMI deduction date?
No, you must wait until the EMI is deducted before applying for foreclosure. For example, if your EMI date is the 5th of January 2025, you can request foreclosure only after the deduction.
9. What happens if my cheque bounces during the foreclosure process?
If your cheque bounces, the foreclosure request will be declined, and additional charges may apply. You will need to re-initiate the process with a valid payment.
10. Do I need to visit the bank in person to close my loan?
Yes, you must visit the bank branch to submit the foreclosure request and required documents. However, some services, such as downloading the NOC, can be done online if you have an Axis Bank account.
