Introduction
Closing a personal loan before or at the end of its tenure is an important financial step to ensure you are debt-free and avoid unnecessary interest charges. Axis Bank, one of India’s leading private sector banks, offers flexible personal loan repayment options. However, many borrowers are unsure about the exact process of closing their loan accounts.
In this comprehensive guide, we will discuss:
- Prepayment vs. Foreclosure of an Axis Bank Personal Loan
- Steps to Close a Personal Loan in Axis Bank (Online & Offline)
- Important Charges and Penalties
- Documents Required
- Common Mistakes to Avoid
- FAQs on Axis Bank Personal Loan Closure
By the end of this article, you will have a clear understanding of how to close your Axis Bank personal loan efficiently in 2025.
1. Prepayment vs. Foreclosure: What’s the Difference?
Before proceeding with loan closure, it’s essential to understand two key terms:
A. Prepayment
- Partial payment of the loan before the due date.
- Helps reduce the principal amount and interest burden.
- Axis Bank allows prepayment after a certain number of EMIs (usually 6-12).
B. Foreclosure
- Complete repayment of the loan before the tenure ends.
- Saves interest but may attract foreclosure charges.
- Axis Bank permits foreclosure after a minimum EMI period (check terms).
Note: RBI guidelines prohibit foreclosure charges on floating-rate loans, but fixed-rate loans may still have penalties.
2. How to Close an Axis Bank Personal Loan in 2025?
You can close your Axis Bank personal loan through online and offline methods.
A. Online Method (Via Net Banking/Mobile App)
Step 1: Log in to Axis Bank Net Banking or Mobile App
- Visit www.axisbank.com or open the Axis Mobile App.
- Enter your credentials (Customer ID & Password).
Step 2: Navigate to Loan Section
- Go to “Loans” → “Personal Loan” → “View Details”.
- Check your outstanding balance.
Step 3: Initiate Foreclosure/Prepayment
- Select “Foreclose Loan” or “Make Part Payment”.
- Enter the amount you wish to repay.
Step 4: Confirm & Pay
- Verify charges (if any).
- Choose a payment method (Savings Account, Debit Card, UPI).
- Complete the transaction.
Step 5: Obtain NOC & Update CIBIL
- After payment, download the No Objection Certificate (NOC).
- Ensure Axis Bank updates your CIBIL record within 30 days.
B. Offline Method (Via Branch Visit)
Step 1: Visit the Nearest Axis Bank Branch
- Locate your home branch or any Axis Bank branch.
- Carry necessary documents (ID proof, loan details).
Step 2: Submit a Loan Closure Request
- Fill out the Loan Foreclosure Form.
- Request the outstanding amount (principal + interest + charges).
Step 3: Make the Payment
- Pay via cash, cheque, or demand draft.
- Get an acknowledgment receipt.
Step 4: Collect NOC & Loan Closure Letter
- The bank will process the request in 3-5 working days.
- Collect the No Due Certificate (NDC) and update CIBIL.
3. Axis Bank Personal Loan Foreclosure Charges (2025)
While RBI has waived foreclosure charges on floating-rate loans, Axis Bank may apply fees in certain cases:
| Loan Type | Foreclosure Charges |
|---|---|
| Floating Rate Personal Loan | Zero charges (as per RBI) |
| Fixed Rate Personal Loan | 2-5% of outstanding amount |
| Prepayment before EMI lock-in | Up to 4% penalty |
Pro Tip: Check your loan agreement or call Axis Bank customer care (1860-419-5555) for exact charges.
4. Documents Required for Loan Closure
- Loan account number
- Identity proof (Aadhaar, PAN, Passport)
- Latest EMI payment receipts
- Foreclosure request letter (if offline)
- Cancelled cheque (for verification)
5. Common Mistakes to Avoid When Closing a Personal Loan
- Not Checking Foreclosure Charges – Always confirm fees before closing.
- Ignoring CIBIL Update – Ensure Axis Bank marks your loan as “Closed” in CIBIL.
- Not Collecting NOC – Without it, future disputes may arise.
- Closing Too Early – Some loans have a minimum EMI lock-in period.
6. FAQs on Axis Bank Personal Loan Closure
Q1. Can I close my Axis Bank personal loan online?
Yes, via Net Banking or the Axis Mobile App.
Q2. How long does it take to close the loan?
Online: Instant | Offline: 3-5 working days.
Q3. Will foreclosure affect my credit score?
No, if done correctly. Ensure CIBIL is updated.
Q4. What if I lost my loan account details?
Call customer care or visit a branch with your KYC documents.
Conclusion
Closing an Axis Bank personal loan in 2025 is a straightforward process if you follow the right steps. Whether you choose online foreclosure or an offline method, ensure you:
✔ Check foreclosure charges
✔ Obtain an NOC
✔ Update your CIBIL record
By closing your loan responsibly, you improve your credit profile and financial freedom. If you face any issues, contact Axis Bank’s customer support for assistance.
Need Help?
- Axis Bank Customer Care: 1860-419-5555
- Email: customerservice@axisbank.com
Would you like assistance with loan refinancing or balance transfer options? Let us know in the comments!
