With numerous financial service providers in the market, opting for loans has become very easy. There is a myriad of loan plans which the customers can choose according to their requirements. When it comes to repaying the loan amount, doing the online EMI payment amount alone is not enough. The borrowers must ensure that each component of the loan process gets completed to sign off their dues or clearly loan repayment. If you opt to get your loan from Muthoot Finance, you can use the online Muthoot payment portal to pay back your loans on time without any delay and fine amount.
However, to dwell deeper on the topic to provide you with more insight, we have listed some of the important points to remember while doing your loan repayment. Let’s dive into the essential points:
Clear unpaid penalties:
If you are planning to repay the online EMI payment or foreclose the loan, inform your bank representative and check for unpaid penalties or other charges. Moreover, there are numerous online portals and platforms where you can pay your loan amount, such as the Online Muthoot Payment portal.
Also, the majority of the banks charge one to five per cent charges on the outstanding loan amount. The penalty gets increased with the delay in the payment. Also, when you have paid that, make sure to submit all the necessary supporting loan repayment documents.
Also, check whether the banks have returned all the documents in compliance with the loan repayment. So, you can pay your loans and close the dues without any hassles involved.
Get the lien removed:
Many financial institutions and banks that provide home and vehicle loans put a lien on the collateral to avoid losses in the future from bad loans. Very few people know that a lien is a legal right of the banker to sell the collateral asset of the borrower in the event of non-repayment of the loan amount.
It would be wise for a borrower to get the lien removed in case of repaying the online EMI payment. The creditor will then issue a Non-Objection Certificate (NOC), meaning that the debtor has cleared all the dues and need not pay anything more. The borrower may choose the online Muthoot Payment portal or any other platform for loan repayment.
If possible, choose a banking partner or financial service provider, who doesn’t prefer to put a lien on the collateral you submit. That is why you do not have to go through the process of getting it removed in the first place.
Seek detailed statements of all the transactions:
In the case of the online EMI payment of the home loan, borrowers need to struggle to receive back the documents about their properties. However, it is essential to seek all the vital records and a detailed statement of all the transactions, also called the Non-Encumbrance Certificate, ensuring zero liabilities from the borrowers and creditors in the future.
Moreover, users can select from numerous platforms available for Online EMI Payment hassle-free and quick, one of them being the online Muthoot Payment portal.
Complete the entire loan process on time:
The borrowers need to understand that taking a loan means debts and inviting possibility of losing a collateral asset. Thus, the borrowers must never take the online EMI payment lightly.
ensure that all the documents are in place and no single loan repayment process part gets incomplete or left at creditor.
Even if the borrower repays the loan online via the online Muthoot Payment portal or through any other online platform, the borrowers must take care to complete the entire loan process on time.
Repaying affects the credit score:
Taking a loan and not paying it on time will affect your credit score. Repaying or prepaying the loan will make you more eligible for another loan in the future. Make sure you do it on time to keep your credit score healthy.
The credit score will effectively improve if you pay the loan on time. The borrower must ask the bank to update the score. However, it takes time, but one must pursue to avoid difficulties in borrowing another loan. Even if you are paying via the online Muthoot Payment portal, you must update the credit score.
Know if the loan has a prepayment charge or not:
Before you opt for a loan make sure, it has a prepayment charge or price associated with it. If you have decided to prepay the loan via the online Muthoot payment portal or any other platform. ensure that the loan charges for prepayment.
Few lenders still charge for paying off the loan early. Moreover, if you have only a few payments left and the loan has high prepayment charges, you better wait for a few months.