Q. What are the Pre-Closure charges applied on paying personal loan before tenure period.
Answer: 2-5% of the Principal
Notes: Pre-closure refers to completely paying off a personal loan before the loan tenure has ended. Just like pre-payment charge, pre-closure charges range from 2% to 5% of the loan amount.
Question Source: 📚This question is part of Banking Awareness - 2025-26 course in GKToday's Android Application. The Course comprises 2400+MCQs on Banking & General Financial Awareness with explanation for All Banking Exams of 2025-26 such as IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Banking Examinations. Download the app here.
📌 Question Number: 10 in 80-Personal Loans in the above course in App.