Close a personal loan at the end of the term
The first reason for closing a personal loan is the expiration of this loan. In fact, this type of loan, like most others, closes automatically as soon as the client has reached the end of the contract and repays all the deadlines specified in his opening contract.
In order to continue to have a reserve amount of money, you have to take out a new personal loan from the same bank or another one of your choice.
Early repayment to close a personal loan
If you wish to close your personal loan, you can make one or more early repayments. These are governed by Article L311-29 of the Consumer Code, which authorizes this type of transaction without any compensation in return.
When you want to make an early repayment, it is essential to contact your lender and define with the latter the terms of the transaction.
Closing a personal loan thanks to the right of withdrawal
When contracting a personal loan, there are several mandatory steps. As a first step, the lender must inform the applicant of the different credit terms, check his creditworthiness and then offer him a loan offer. Once this contract is signed, there is a right of withdrawal for the customer who can, if he wishes, cancel his request for a loan.
Since July 1, 2010, Law No. 2010-737, has passed the withdrawal period of seven to fourteen business days, once the loan offer signed by the applicant. If he wishes to make use of it, he must send to the lending agency a registered letter with acknowledgment of receipt. Note that the applicant does not need to indicate a reason for this cancellation during the withdrawal period.
This transaction will close the personal loan immediately and cancel the financial transactions.
No personal loan close before maturity
Apart from the early repayment or use of the right of withdrawal in time, it is absolutely impossible for a client to close his personal loan before the deadline fixed by the loan agreement.
Indeed, once permanently committed, the latter must honor all monthly payments requested in time if he does not want to be subject to late penalties. However, it is possible to arrange the loan in case of concern, especially thanks to the insurance taken out during the commitment.