New Delhi, June 5 -- In a move to boost financial literacy in the country among retail borrowers, several leading banks, Non Banking Financial Companies (NBFCs) along with other financial institutions are now moving towards improving the process of foreclosure of personal loans.

All borrowers who aspire to close their personal loan accounts before the end of the originally decided tenure can do the same by following a structural procedure. The Reserve Bank of India (RBI) has also reiterated that lenders must clearly communicate and elaborate the prepayment requirements, charges and documentation needs with the borrowers to make the entire process transparent and hassle free for the borrowers.

Foreclosure refers to the full repayment of ...