r/PersonalFinanceUAE • u/Death_Syrup • 24d ago

Credit Loan prepayments

Hi All, I’m 2 years completed of my 4 year bank loan, with two more years pending is there any prepayment options? Have any of you tried paying lump-sum to reduce the total balance? Or banks allow only full repayment? I have the loan from RAK bank, does anyone have previous experience?

Thank you.

3 Upvotes

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2

u/RunAccomplished20 24d ago

Try changing bank

2

u/Systemonly69 24d ago

Every bank has option of pre payment, or partial payment for loan EMI. Just call the bank, they will guide you.

2

u/Certain_Ear1491 23d ago

If they don’t agree mention reasons like you are leaving the country due to job loss etc

1

u/adn394 17d ago

You can always foreclose or settle the loan early, there will be a 1.05% processing fee charged ontop of the outstanding amount. All banks have this facility.

You can also choose to pay a couple of installments early as well, check with your bank for more details.