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How to Get Easy Instant Personal Loans without a Bank Statement?
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How to Get Easy Instant Personal Loans without a Bank Statement?
As of Q3 2024, personal loan debt rates make up about 1.4% of the total consumer debt. Most of us have experienced financial crunches at some point in life, such as during medical emergencies or planning home improvements. In such situations, many of us turned to personal loans to obtain some financial backup in crucial times. We can use personal loans for any purpose, be it paying hospital bills, making large purchases, or consolidating numerous debts.
If your application is approved, you can withdraw the full or partial amount and receive it in your bank account within a few days. You can use the funds for multiple purposes. Thereafter, you should repay the loan in certain fixed monthly installments, as mentioned in the loan application terms. The best thing about personal loans is that one can withdraw the funds through simple online procedures and receive a lump sum amount quickly.
However, after reaping its full benefits, you should take responsibility and close your personal loan on time. The best solution would be to learn how to close personal loans early. It’s a good thing that you have made this crucial financial decision to apply for a loan to fund your dream home or pursue your dream career. Now, it’s time for early repayment.
What Does Closing a Personal Loan Mean?
Can we close the personal loan early? Yes, we can! Closing a personal loan indicates that you have made its entire repayment and have paid all its monthly installments. When you pay a loan in full, it means that the loan account is closed, and you will get a “No Dues Certificate”. On the other hand, if the borrower fails to make timely payments, the loan is sent to collections, where it gets assigned to a third-party debt collection agency.
Types of Loan Closure: Regular vs. Pre-Closure
Let’s discuss the two major types of loan closures.
- Regular Closure: In a regular loan closure, the borrower repays the loan according to the loan agreement, that is, on the due dates.
- Pre-Closure: It refers to the borrower’s decision to repay the loan earlier than the stated due date.
Step-by-Step Process to Close a Personal Loan
Let’s take a look at the step-by-step procedure on how to pre-close a personal loan.
- Visit the bank or lender with the necessary documents, as required.
- The lender may ask you to fill out a form or write an appealing letter to request a pre-closure of your existing personal loan account.
- Sign the required documents whenever asked for.
- You might need to pay a certain pre-closure amount, if applicable.
- After paying your balance amount and repaying the entire loan, take an acknowledgment regarding the closure of the loan account and the balance amount you have already paid.
Benefits of Closing a Personal Loan Early
Most people ask, “Can I close personal loan early?”. The short answer is yes! It saves money on the total interest. That’s because it cuts down on the interest amount paid over the entire loan tenure. This can save a good amount of money. A few other benefits of closing your personal loan early include:
- Boosting your credit score
- Gaining a peace of mind
- Reducing your debt-to-income ratio
- Enjoying financial stability since there would be no recurring payments
Impact of Loan Closure on Your Credit Score
If you pre-close personal loan, it can have a short-term or temporary impact on your credit score, including:
- A temporary dip in your credit score as there are changes in the credit profile
- Future applications may slow down due to delayed updates on the credit report
- Foreclosure charges may apply
- Your financial flexibility or liquidity may be affected since you are paying a large sum towards the loan pre-closure.
What Documents Do You Need to Close a Loan?
To close a loan early, you might need some or all of the following documents, depending on the lending partner’s policies.
- Loan account statement
- Loan closure formal request
- No Objection Certificate (NOC)
- Identity proof
- Address proof
- Proof of final payment
How to Verify Your Loan is Officially Closed
After the final payment, you must verify whether your loan account is officially closed from the lender’s end. Review your loan documents and look for a confirmation message from your lender.
- Review the loan closing disclosure.
- Check your emails, messages, etc., to verify whether you received your official loan closure confirmation.
- Collect your payoff statement or letter
- Ask your lender directly
- Keep every record of all your loan agreement documents
Can You Close a Personal Loan Online?
Yes, you can make prepayments for your existing loan online. However, learn from your lender whether they accept online payment methods or prefer other electronic money transfer modes. Wondering how to close personal loans faster online? Follow these steps:
- Contact the lender or bank using their customer care number.
- Provide all the required loan details, account number, ID details, etc.
- Inform about your interest in loan foreclosures.
- Follow the documentation or other essential steps or instructions.
- Make the final foreclosure amount, and now you can enjoy peace of mind.
Alternatives to Pre-Closure of a Loan
Since loan foreclosures impact your credit history for a brief period, you can try other alternatives to loan pre-closures.
- Reinstate your loan.
- Make a new repayment plan.
- Modify your loan by lowering the interest rate or adding overdue amounts to the loan balance.
- Try refinancing to pay off your old debts and start afresh with a better interest rate.
Conclusion
Securing a personal loan without proof of income and bank statements is now easier than ever, thanks to advancements in digital lending. One needs to understand the process and meet the necessary criteria to access quick funds without the burden of extensive paperwork. However, it is vital to choose reliable lenders and ensure you’re comfortable with the loan terms.
Frequently Asked Questions
1. Can I get a personal loan without proof of income?
Yes, many lenders offer personal loans without proof of income, provided you meet other criteria like a strong credit score or alternative income documentation.
2. Which lenders offer personal loans without a bank statement?
Several fintech platforms, such as Stashfin, specialize in offering instant personal loans without bank statements through digital verification methods.
3. How much of a loan can I get without a bank statement?
The loan amount varies by lender and is often smaller than traditional loans. It depends on factors such as your credit score, income stability, and the lender’s policies.
4. Can self-employed individuals get loans without bank statements?
Yes, self-employed individuals can apply for loans without bank statements by providing alternative proofs, such as invoices, contracts, or digital payment records.
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