Loan Foreclosure on Credit Card

If you ever decide to launch credit cards in future, this may come in handy. So as you know banks offer loans on credit cards. Now if you try to foreclose it, one may think that they need to pay the balance amount + interest + foreclosure charges to close the loan but what very few people know is that they also need to pay the unrelated unbilled transactions on card at the same time and what is not surprising is that most bank employees themselves have no clue about it.

Generally people think that unbilled will first become billed and then that amount needs to be paid but in case of loan on credit card foreclosure, unbilled also needs to be paid otherwise finance charges will be levied. This happens at the bank which starts with H and calls itself the number 1 bank of India.

If you do offer credit cards and then also decide to offer loan on it, then please keep the foreclosure straightforward, i.e remaining principal + interest + foreclosure charges and if you also add unbilled then please inform the user about it, like an email stating that because you are doing a foreclosure, you also need to pay the unbilled amount along with the loan foreclosure amount.

A direct close button on app which on click calculates the amount (principal, interest, foreclosure charges etc…) and displays it and option to pay will be very good so that the user can foreclose any general loan or loan on credit card all by himself without contacting bank.

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