New Delhi, April 9 -- Paying the full outstanding balance of a personal loan before the original loan time period is known as pre-closure. Those looking to improve their financial position and manage their personal loans more effectively will want to know the details surrounding pre-closure of a personal loan which is covered here.

Personal loans are flexible in their intended purpose, however interest charged over the course of the loan can be significant. Paying off the loan in full prior to the original loan term allows borrowers the opportunity to avoid future interest payments. Depending on the financial institution, a prepayment charge or fee may be assessed in order to pay off the loan early.

The following generally address the s...