Is it a good idea to foreclose a personal loan in 2022? Here’s what Apnapaisa suggests

Have you taken a personal loan to deal with an emergency? In case you are someone who has availed a personal loan in case of an urgent financial emergency, but now the EMIs are burdening the entire budget and it is getting difficult for you to cope with the growing disparity between the income & expenses. And now, you are thinking of getting rid of that debt obligation and have plans for pre-closing your loan. Being closely related to personal finance & debt management, there are a few questions that are quite obvious in a situation like this – Would it be suitable to close it at this time of the year in 2022? Or what would it cost in terms of the closing charges & additional fee applicable to it? Or how easy is it to pre-close a loan nowadays? To address this entire discussion of fore-closing a loan with the recent changes in the MCLR rates and the MPC’s decision to keep the Repo rate unchanged, here are a few suggestions for all of us to have a better understanding and to provide balanced guidance on how to approach such a situation.