Close Your RD Account with a Loan in Finacle in Just a Few Steps 2023 by Navigating the labyrinth of financial systems can be a daunting task, especially when it comes to closing your Recurring Deposit (RD) account in Finacle, while simultaneously managing an existing loan. Fear not, for this guide is here to illuminate the path, simplifying the process into digestible steps, making it accessible for both novices and seasoned users alike.
An RD account, a term deposit variant, allows you to regularly deposit a fixed sum, while a loan in Finacle signifies any credit you’ve borrowed from the bank. The first step in this journey is to ensure that your loan repayments are current, with no outstanding dues lurking in the shadows. Once you’ve confirmed this, you can bravely venture into the Finacle interface. Here, you’ll find the ‘Close Account’ option, a beacon in the complex financial landscape. Follow the prompts that appear, like breadcrumbs leading you to your goal.
However, remember, every financial decision is a step on the tightrope of your credit score and overall financial health. It’s always prudent to seek the counsel of your bank representative or financial advisor, a guiding hand in the intricate dance of financial decisions. They can help you understand the potential implications of your actions, ensuring you maintain balance and don’t stumble.
What You Have to Know Before Closing Your RD Account with a Loan in Finacle
Before you dive into the intricacies of managing your Recurring Deposit (RD) account and its associated loan, it’s crucial to grasp a few fundamental aspects. These elements are the bedrock of a seamless and stress-free experience.
1. You Must Have a Valid RD Account with a Loan Outstanding
The first cornerstone is the possession of a valid RD account. This account should not only be active but also in good standing. Crucially, it should be linked to an outstanding loan, be it a personal loan, a home loan, or any other loan type that the bank offers against RD accounts should be in an active state, implying it hasn’t been fully settled or written off by the bank.
2. You Must Have the Loan Amount and Interest Due in Full
The second pillar is the readiness to settle the entire loan amount along with the accrued interest. This implies that you should be prepared to clear the total loan amount and the interest that has accumulated over the loan’s lifespan. It’s worth noting that the interest due isn’t merely the interest rate applied to the loan, but the total interest that has compounded over time. This information is typically available in your loan statement or can be obtained by reaching out to your bank.
3. You Must Have the Account Number and PIN for Your RD Account
Finally, you should have your RD account number and your Personal Identification Number (PIN) at your fingertips. The account number is a unique code that the bank uses to track your account, while the PIN is a security feature to ensure that only you can access your account. Both these pieces of information are vital for logging into your online banking portal or for verifying your identity when interacting with a bank representative.
In summary, before you venture into the realm of loan management, ensure you have an active RD account with an outstanding loan, the total loan amount and interest due, and the account number and PIN for your RD account. These are the critical pieces of information that you’ll need to have at your disposal to get RD Account with a Loan in Finacle.
How to Close Your RD Account with a Loan in Finacle
Step 1: Initiate the process by accessing Finacle.
- Finacle, a comprehensive banking solution crafted by Infosys, is your first stop. This platform, which caters to a wide array of banking needs such as retail, corporate, and mobile banking, requires you to sign in using your unique credentials.
Step 2: Navigate to the designated RD Closure section.
- RD, an acronym for Recurring Deposit, is a popular term deposit option provided by Indian banks. It enables customers to consistently deposit a predetermined sum into their RD account on a monthly basis, thereby earning interest at the applicable rate. Within the user-friendly interface of Finacle, you’ll find a dedicated section or menu for RD Closure. Make your way there.
Step 3: Input your specific account details.
- To proceed, you’ll need to key in your unique RD account number along with your Personal Identification Number (PIN). This step is crucial for verifying your identity and safeguarding the security of your account.
Step 4: Opt to close your account, keeping in mind the loan.
- If your RD account is tied to an outstanding loan, you’ll find an option to close the account while settling the loan. By choosing this, you’re indicating your intention to simultaneously close the account and clear the loan.
Step 5: Settle the outstanding loan and accrued interest.
- To successfully close the account, you’re required to clear the remaining loan balance, which includes any interest that has accumulated over time. Finacle will display this amount, and you can proceed to make the payment using the various options provided within the platform.
Step 6: Confirm the successful closure of your account.
- Once you’ve cleared your loan and interest, you should receive a confirmation indicating the closure of your account. This could be presented as an on-screen message, an email, or a text message. It’s advisable to retain this confirmation for your records.
In essence, the process of closing your Recurring Deposit (RD) account with a loan in Finacle is a sequence of steps that begins with accessing your account, moving to the RD Closure section, inputting your account details, opting to close the account with a loan, clearing the outstanding loan and interest, and finally, confirming the closure of your account to get approved your RD Account with a Loan in Finacle. This process, while straightforward, is designed with utmost attention to the security of your account and the proper settlement of any outstanding debts. Always ensure to keep a record of your account closure for future reference.
RD Account with a Loan in Finacle
|Account Opening||The RD account can be opened in Finacle with a minimum deposit that varies from bank to bank.|
|Interest Rate||The interest rate on RD accounts is usually higher than regular savings accounts. It is compounded quarterly in most banks.|
|Tenure||The tenure of an RD account can range from 6 months to 10 years.|
|Premature Withdrawal||Premature withdrawal is allowed in RD accounts, but it may attract a penalty.|
|Taxation||Interest earned on RD is taxable as per the individual’s income tax slab.|
|Loan against RD Account|
|Loan Eligibility||Banks usually provide loans against RD accounts. The loan amount can be up to 90% of the deposit amount.|
|Interest Rate||The interest rate on the loan is usually 1-2% higher than the RD account interest rate.|
|Repayment||The loan can be repaid in EMIs or as a lump sum, depending on the bank’s policy.|
|Security||The RD account acts as collateral for the loan.|
|Loan Tenure||The loan tenure cannot exceed the remaining tenure of the RD account.|
FAQs RD Account with a Loan in Finacle
What happens if I can’t meet the full payment for my loan and the interest that’s due?
In the event that you’re unable to meet the full payment for your loan and the accrued interest, there are several avenues you could explore:
Loan Restructuring or Refinancing: This involves negotiating with your financial institution to alter the terms of your loan. You could potentially extend the loan period, which would lower your monthly payments, or negotiate a lower interest rate.
Payment Plan: Another option is to discuss a payment plan with your lender. This would allow you to make smaller payments over an extended period, making the debt more manageable.
Loan Forbearance: If you’re experiencing financial hardship, you might be eligible for a loan forbearance. This is a temporary reduction or pause in your loan payments.
Debt Consolidation: If you’re juggling multiple loans, consolidating them into one loan with a lower interest rate could simplify your debt management.
It’s crucial to maintain open communication with your lender if you’re struggling with payments. They may be able to provide resources or options to help you manage your debt and to get approved your RD Account with a Loan in Finacle.
Is it possible to close my RD account online?
Yes, you can typically close your Recurring Deposit (RD) account online. The exact procedure may vary depending on your bank, but it generally involves the following steps:
Access your online banking account: Use your username and password to log in.
Find the RD account section: Once you’re logged in, locate the section that deals with RD accounts.
Choose the RD account you want to close: You should see a list of your RD accounts. Choose the one you wish to close.
Follow the instructions to close the account: There should be an option to close the account. Follow the instructions, which may include confirming your decision or providing a reason for closing the account.
Before proceeding, ensure you’re aware of any penalties or charges associated with closing your RD account before its maturity in your RD Account with a Loan in Finacle.
3. What are the advantages of closing my RD account with a loan?
There are several potential benefits to closing your Recurring Deposit (RD) account with a loan:
Loan Repayment: The funds from your RD account can be used to repay an outstanding loan, reducing your debt and the interest you’re paying.
Lower Interest Rates: The interest rate on an RD is typically lower than that on a loan. By using your RD funds to repay your loan, you could save on interest payments.
Improved Credit Score: Paying off your loan can boost your credit score, making it easier to secure loans in the future.
Financial Freedom: Using your RD account to pay off a loan can provide a sense of financial freedom and alleviate the stress associated with debt.
However, it’s important to consider the potential penalties or loss of interest that could result from closing your RD account early. Always balance the benefits against the potential costs before making a decision to your RD Account with a Loan in Finacle.