To pre-close the loan, you have to pay the amount of your current EMI, remaining EMIs and minimal charges for pre-closure of loan. In majority of the cases in personal loan, you can choose the pre-close loan option only after a year. You can save significant amount on interest by paying the loan before the completion of tenure. Although, you will have to pay minimal charge for pre-payment of loan, it is better than paying a huge interest.
Pre-payment of loan is the best option, if your amount of loan is huge. In nutshell, it is always a nice choice but don’t turn a blind to all the terms and conditions.