Taking a personal loan can help during financial emergencies, but many borrowers want to close their loan early to save interest or reduce liabilities. If you have taken a personal loan from YES Bank, understanding the closure process is important to avoid unnecessary charges and delays.
In this article, we will explain how to close a YES Bank personal loan with a real-time example for better clarity.
What Does Closing a Personal Loan Mean?
Closing a personal loan means paying the entire outstanding amount before the loan tenure ends. This is also called:
Foreclosure
Pre-closure
Full repayment
Closing early can help you:
✔ Save interest cost
✔ Improve credit score (if paid properly)
✔ Reduce monthly EMI burden
Important Rule Before Closing YES Bank Personal Loan
YES Bank generally allows loan closure only after 12 EMIs are paid due to the lock-in period. �
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After this period, you can foreclose your loan by paying the outstanding principal along with applicable charges.
YES Bank Personal Loan Closure Charges
Foreclosure charges depend on how early you close the loan:
13–24 months: 4% of outstanding principal
25–36 months: 3% of outstanding principal
37–48 months: 2% of outstanding principal
After 48 months: Nil charges
These charges are standard but may vary based on your loan agreement. �
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Step-by-Step Process to Close YES Bank Personal Loan
Step 1: Check Outstanding Amount
Contact customer care or visit your branch to request a foreclosure statement.
Step 2: Request Loan Closure
Submit a written request or email for loan closure mentioning:
Loan account number
Closure date
Payment mode
Step 3: Make Payment
Pay the foreclosure amount through:
Net banking
Cheque
NEFT/RTGS
Branch payment
Step 4: Collect Closure Documents
After payment, always collect:
No Due Certificate (NDC)
Loan Closure Letter
Updated CIBIL report confirmation
These documents are very important for future loans.
Real-Life Example: Sangeeta Chutia’s Loan Closure Journey
Sangeeta Chutia, a salaried professional from Guwahati, took a personal loan of ₹3,00,000 from YES Bank for medical expenses.
Loan Details
Loan Amount: ₹3,00,000
Tenure: 5 years
EMI: ₹7,200 (approx.)
After paying EMIs for 18 months, her financial condition improved and she decided to close the loan early.
What She Did
She visited the branch and requested a foreclosure statement.
Bank informed her outstanding principal was ₹2,10,000.
Since she was closing within 24 months, foreclosure charges were 4%.
Total payable amount = ₹2,10,000 + charges + GST.
After payment, she received a No Due Certificate within 7 working days.
Result
She saved nearly ₹60,000 in future interest.
Her credit score improved after closure.
Benefits of Closing Personal Loan Early
✔ Saves interest cost
✔ Improves debt-to-income ratio
✔ Helps in getting future loans easily
✔ Peace of mind from being debt-free
Things to Check Before Closing
Before closing your loan, always:
Read your loan agreement
Confirm foreclosure charges
Ensure no pending EMI
Take written confirmation from bank
FAQs
- Can I close YES Bank personal loan anytime?
No, usually you must complete at least 12 EMIs before foreclosure is allowed. - Is there any penalty for early closure?
Yes, foreclosure charges apply depending on the tenure completed. - How long does loan closure take?
Typically 5–10 working days after payment. - Will closing loan early affect my CIBIL score?
No, it usually improves your score if payments were regular.
Final Thoughts
Closing a YES Bank personal loan early is a smart financial decision if you have surplus funds. However, always calculate foreclosure charges and interest savings before making the final decision.
The example of Sangeeta Chutia shows that proper planning can save significant money and improve financial stability.
