New Delhi, March 21 -- Pre-closing a personal loan from any bank is a good financial decision, but one must be cautious while doing so by keeping certain important points in mind. Firstly, a personal loan is a very risky line of credit that borrowers avail.

This is risky because it comes with the potential of higher repayment terms, interest rates and EMIs. That is why borrowers need to carefully consider all the associated intricacies of the loans they aspire to avail before availing them. Similar goes with the pre-closing of a personal loan. Here's what borrowers need to clearly understand about the pros and cons of this option:

Pre-closure of a personal loan simply means repayment of the entire loan amount before the due date. It is ...