If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
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    We found 34 Prepayment Conditions for Car Loans

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    13.1% - 15% Floating
    0
    20K - 10L
    1-5 Years
    Response Time Within 30 minutes
    Ad Rs.2,500 Amazon voucher free Paperless approval option available
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    9.10% - 15% Fixed
    Up to ₹ 6,153 One time fee
    1L Min
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free
    What you'll love
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    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    9.00% Floating
    ₹500 to ₹7000 + S.T.
    1Cr Max
    7 Years
    Response Time Within 30 minutes
    What you'll love
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    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    9.50% - 11% Fixed
    2,500 One time fee
    1L Min
    1-5 Years Tenure
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free
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    Fees & Charges
    Good to Know
    Eligibility Criteria
    9.15% - 11.6% Fixed
    Up to ₹5,150 One time fee
    1L Min
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free PAPERLESS APPROVAL OPTION AVAILABLE
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    12.5% - 14.5% Floating
    2% One time fee
    1.5L - 25L
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free 100% financing on car value
    What you'll love
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    Perks
    Think about
    Fees & Charges
    Good To Know
    Eligibility Criteria
    8.75% - 11.50% Fixed
    Up to ₹5500
    1L Min
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free
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    Fees & Charges
    Good to Know
    Eligibility Criteria
    12.25% - 13.99% Fixed
    Up to ₹4000 One time fee
    75K Min
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free Paperless approval option available
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    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    9.15% Floating
    575 One time fee
    1L - 2Crs
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free
    What you'll love
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    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    16% Floating
    1% One time fee
    50K - 15L
    1-4 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free
    What you'll love
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    Perks
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    Fees & Charges
    Good to Know
    Eligibility Criteria
    12% - 14% Fixed
    2,500 One time fee
    1L Min
    1-3 Years Tenure
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free
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    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.90% Floating
    ₹500 to ₹7000 + S.T.
    1Cr Max
    7 Years
    Response Time Within 30 minutes
    SPECIAL OFFER FOR WOMEN
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    Prepayment Conditions for Car Loans is Rated as "Great!" by 27518 Users

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    Car Loan BYTES FROM OUR KITCHEN

    What is Prepayment?

    More than often, people avail car loans to fuel their dreams of owning an automobile because a one-time purchase like a car, could burn up their savings. When finances look up or if there is a sudden influx of money, it is wise to end the debt. In simple terms, prepayment or foreclosure means the satisfaction of debt before the end of tenure.


    People usually look to prepay the loan because it not only offers interest savings but also lets them avail other loans easily. But, there are certain factors that you must consider before you decide to prepay a car loan. Read on to find more about car loan foreclosure and its impact on your finances.

    Car Loan Prepayment Penalty

    If the borrower pays the loan amount well before the pay-off date, he is charged a certain penalty by the bank. Because the lender does not get the anticipated interest, the penalty usually acts as a compensation. The car loan foreclosure penalty amount depends on the principal outstanding, interest outstanding and also at what point of the tenure the loan is being paid off.

    Prepayment and pre-closure could mean differently when it comes to penalty charges. Prepayments can be done in parts and pre-closure means foreclosure of the entire loan before end of the tenure. It is important that you are well-informed about the prepayment clauses and penalty charges before applying for a loan with a particular bank.

    How do I calculate Car Loan Prepayment Charges?

    Sometimes, prepayment can work to your advantage and sometimes not. For example, foreclosure of a car loan towards the end of tenure may not be favourable because the prepayment penalty may exceed the interest to be paid towards the loan. You can use an online car loan prepayment calculator to check your prepayment penalty based on the principal outstanding amount.

    In a car loan prepayment calculator, you will have to enter details like the original loan amount, start date of the car loan, tenure, rate of interest and prepayment penalty. Some calculators will ask you to input the number of months left to pay back the loan and current EMI. Based on the information that you have provided, the car loan prepayment calculator will project by how much your principal balance is lowered, the interest savings and also the number of months by which the repayment term is shortened.

    This information will help you make a wise decision when it comes to prepaying a car loan. In short, if the interest savings is greater than that of the penalty, you can proceed with the car loan foreclosure.

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    Two Types of Car Loan Prepayment

    When it comes to car loan foreclosure, there are two broad types – part and full.

    • Part prepayment: When you are paying off a part of the car loan by making larger payments than the EMI, before the end of the tenure, then it is called part prepayment. By this, your principal outstanding will be reduced and also the EMI.
    • Full prepayment: When you are paying off your loan entirely before the end of tenure, it is called full prepayment. It is equal to closing off the loan.
    • Some banks do not allow prepayment in parts for car loans. Also, make sure that you are informed about the new repayment schedule after you do a part prepayment.

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    What is the procedure for Car Loan Prepayment?

    Follow the points below to know the procedure for car loan prepayment.

    • If you decide to foreclose your car loan, it is advised that you read the bank’s loan document carefully. Some banks do not allow prepayment of car loan for at least a year after the loan is availed.
    • Once you are clear about all the foreclosure clauses, contact the bank directly. You may be asked to fill in a form for foreclosure. The penalty fee (if any) can be paid through ECS, cheque, drafts and also NEFT.

    Should you prepay your Car Loan?

    There are certain pros and cons to foreclosure that one must weigh carefully before deciding to pay-off the car loan. Here are some of the points that will help you decide on foreclosure.

    • Savings on Interest

      Borrowers should consider the prevailing interest rate for car loans rather than the tenure when it comes to prepayment. Whether or not to close your loan is influenced by factors like the stage of payment you are at, the prepayment penalty and the interest rate.

    • Foreclosure Charges

      The penalty for prepayment vary from bank to bank and is dependent on many factors. The car loan prepayment penalty can be charged as a flat rate or as a percentage of interest or principal outstanding. Borrowers must compare the penalty amount against the overall interest savings.

    • Consider all Options

      Though it is a wise decision to pay-off your loan, you must make sure that the money is being put to good use. If you could invest the money somewhere and gain better profit than all interest savings that come through foreclosure, why choose to prepay the loan?

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  • Prepayment Conditions for Car Loans Reviews

    • HDFC Bank Car Loan
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      My experience of availing car loan from HDFC Bank was really good. I got the loan on time and the since I bank with them already I did not have go through much of documentation work. The interest rate and charges was normal and reasonable and it was a hassle free service in all.
      Was this review helpful? 2
      , nagpur
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      0.5 4.0/5 "Great!"
      Bankbazaar.com services are very good one and anyone can easily get the information from them. Website of the Bankbazaar.com is very easy to access, also its comfortable too. Response is also very good with the Bankbazaar.com and this is my first experience as well.
      Was this review helpful? 0
      , pune
      Reviewed on Jun 23, 2017
    • Axis Bank Car Loan
      "Satisfactory"
      0.5 3.5/5 "Pretty good"
      Due to personal reasons I postponed the car loan plan with Axis bank. I am treated very well by Axis Bank executive as I have got the best service and response from them pertaining to the car loan application which is being submitted.The rates applied was 9% and the loan amount I tried to opt is 4 lakhs.
      Was this review helpful? 1
      , pune
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I got a very good response from Bank Bazaar, when I reached them for the car loan, the response provided by them was very prompt, I had been using their service, it is really excellent. I am using Bank Bazaar mobile app and application it is very easy to check all the financial information on this site.
      Was this review helpful? 0
      , agra
      Reviewed on Jun 23, 2017
    • HDFC Bank Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The response is very good from hdfc bank and the executive called me on regular basic to know the application status of the car loan, but my plan got postponed. Interest for the car loan was around 9% with the HDFC bank and the loan amount was about 8 lakhs,
      Was this review helpful? 0
      , agra
      Reviewed on Jun 23, 2017
    • HDFC Bank Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The response is very good from hdfc bank and the executive called me on regular basic to know the application status of the car loan, but my plan was postponed. Interest for the car loan was around 9% with the HDFC bank. And the loan mount was eight lakhs.
      Was this review helpful? 0
      , agra
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      0.5 4.0/5 "Great!"
      The bank bazaar web site helps me to compare and choose the products in the market. The bank bazaar web site is easy to use and user friendly. The bank bazaar customer service really helped me in concern to my car loan application. Overall I can say, bank bazaar gave a satisfied service
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2017
    • Axis Bank Car Loan
      "Satisfactory"
      0.5 3.0/5 "Satisfactory"
      Due to my personal reason, I have not taken the car loan with the Axis bank. Interest rate with the Axis bank haven't discussed about this. Customer service with the Axis bank and they have done the follow on timely basis, also they have done the things in good manner.I have applied for three to five lakh loan.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      0.5 4.0/5 "Great!"
      The services Bankbazaar has been very much satisfactory and the response has been really good too. This was very first experience in bank bazaar. and I came to know about bank bazaar via goggle. The website is good and overall I can say it I had no difficulties to get details of the banks and their deals.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jun 23, 2017
    • Axis Bank Car Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      Due to personal reasons I could not proceed with Axis bank for the car loan. I got a proper response and follow up from the bank checking about my requirement. The loan amount I have applied for 4.5 lakh In all it was a smooth experience.No hassle faced.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jun 23, 2017
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      It was a tremendous approach by state bank of India with respect to my car loan application. It is an very fast and quick response from SBI end. State bank of India has good transparency with their service, and everything was clear and keen in their service. They just took twelve hours to disburse my car loan. The rate of interest is very competitive with SBI as it was around 8.75%
      Was this review helpful? 1
      , bangalore
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Excellent"
      0.5 4.5/5 "Excellent!"
      My loan application was addressed in a proper way. I submitted the loan on their website immediately when I received calls from their end and they inquired the information from me and forwarded my application to the bank. I received proper service from bankbazaar.com and this was not first experience I have already availed credit card from bank bazaar.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2017
    • Oriental Bank of Commerce Car Loan
      "Average"
      0.5 2.0/5 "Expected more"
      I had applied for a car loan with Oriental Bank of Commerce. The team contacted me once and collected all my details the reason I did not go with Oriental bank of Commerce for the car loan because the rate of interest was high 10% and I have asked they to reduce it they straight away they cannot do that.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2017
    • Kotak Car Loan
      "Its Good"
      0.5 4.0/5 "Great!"
      Six years back, I had taken car loan from Kotak Mahindra, it got completed. I purchased Hyundai I 10 car worth Rs.3.5 lakhs, Kotak Mahindra approved the requested amount with an interest rate of 11.5% but it was higher side at the time. Now it got closed successfully.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2017
    • HDFC Bank Car Loan
      "Smooth process"
      0.5 5.0/5 "Blown Away!"
      I had taken a commercial car loan from HDFC Bank earlier and at that moment I received a good deal on the interest rate and charges. It was a smooth process and I got the loan on time as well. The customer services and response was good and all the paper works were collected on time.
      Was this review helpful? 0
      , pune
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar is good in providing proper information in regards to the loan. I did not face any challenges with bankbazaar at any point of time. The website is so simple to access and it is very informative. It is easy to choose the bank for the loan service.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 23, 2017
    • HDFC Bank Car Loan
      "Average"
      0.5 3.0/5 "Satisfactory"
      Once I submitted my application, they have responded.Once when the application was submitted It was not a good experience they had offered 10.25% as rate of interest which was bit high.compare to other banks. I had idea of applying five lakh rupees. I was over all not satisfied with the rate of interest so dropped the plan.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 23, 2017
    • SBI Car Loan
      "Overall good"
      0.5 4.0/5 "Great!"
      To start off, I had taken my car loan from State Bank of India , I had to go over to the bank to submit my paper work. I also had to visit the branch often for any queries. The charges and interest rate is normal. There is no much of difference when compared to the other private banks too.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Proper Service"
      0.5 4.0/5 "Great!"
      My loan application was addressed in a proper way. I submitted the loan on their website immediately I received calls from their end and they inquired the information from me and forwarded my application to the bank. I received proper service from bankbazaar.com.
      Was this review helpful? 1
      , agra
      Reviewed on Jun 22, 2017
    • HDFC Bank Car Loan
      "Delayed Response"
      0.5 4.0/5 "Great!"
      I did not receive that much good response from HDFC bank for the car loan service. Actually I got delayed response from the bank. Also initially I was planning for the second hand car later I afford new car so I did not continue the loan process with HDFC bank.
      Was this review helpful? 1
      , agra
      Reviewed on Jun 22, 2017
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