If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
  • loading

    Prepayment Conditions for Car Loans

    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 Paperless approval option available
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    9.10% - 13.25% Fixed
    Up to ₹ 6,153 One time fee
    1L Min
    1-7 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    9.10% Floating
    ₹500 to ₹7000 + S.T.
    1Cr Max
    7 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    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
    What you'll love
    Documents
    Perks
    Think about
    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
    PAPERLESS APPROVAL OPTION AVAILABLE
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    12.5% - 14.5% Floating
    2% One time fee
    1.5L - 25L
    1-7 Years
    Response Time Within 30 minutes
    100% financing on car value
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good To Know
    Eligibility Criteria
    9% - 11.50% Fixed
    Up to ₹5500
    1L Min
    1-7 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    11.25% - 13.99% Fixed
    Up to ₹2,300 One time fee
    75K Min
    1-7 Years
    Response Time Within 30 minutes
    Paperless approval option available
    What you'll love
    Documents
    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
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    16% Floating
    1% One time fee
    50K - 15L
    1-4 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    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
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    9.00% Floating
    ₹500 to ₹7000 + S.T.
    1Cr Max
    7 Years
    Response Time Within 30 minutes
    SPECIAL OFFER FOR WOMEN
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria

    Prepayment Conditions for Car Loans is Rated as "Excellent!" by 26284 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

    Responsiveness

    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.

    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.

    Perfect Car Loan Deals for you

    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?

     Loading your search... Loading your search...
  • Prepayment Conditions for Car Loans Reviews

    • Bank Bazaar Customer Support
      "Okay "
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com have provided me the information related to my financial queries in a good way. I would like to say that the website of the Bankbazaar.com is easy to access and the customer service is good one with them till now.
      Was this review helpful? 1
      , chennai
      Reviewed on May 27, 2017
    • Oriental Bank of Commerce Car Loan
      "Satisfied"
      0.5 2.0/5 "Expected more"
      I did not get the car loan with the Oriental bank of commerce because of provident fund . Customer service is fine with the Oriental bank of commerce and the response is immediate one with them. I would like to go ahead with them in the near future.
      Was this review helpful? 0
      , chennai
      Reviewed on May 27, 2017
    • Bank Bazaar Customer Support
      "Wonderful "
      0.5 4.0/5 "Great!"
      Bankbazaar.com is good and its linked one and its very useful one. I would like to say that the website of the Bankbazaar.com is good one and the response is immediate one with them and am using it from the last six months of time.
      Was this review helpful? 0
      , tirupur
      Reviewed on May 27, 2017
    • HDFC Bank Car Loan
      "Excellent "
      0.5 5.0/5 "Blown Away!"
      Due to my personal reason and some other issues, I did not went ahead with the HDFC bank and the customer service is good one with them and the response is an immediate one with them. In future, I would like to go ahead with them in future for my needs.
      Was this review helpful? 0
      , tirupur
      Reviewed on May 27, 2017
    • Bank Bazaar Customer Support
      "Best"
      0.5 4.0/5 "Great!"
      My experience with the Bankbazaar.com was really good and am with them from the last three years of time. Response was good one with the Bankbazaar.com and I got the call from them within fourteen hours of time. I am happy with the Bankbazaar.com.
      Was this review helpful? 0
      , gurgaon
      Reviewed on May 27, 2017
    • Axis Bank Car Loan
      "Satisfied"
      0.5 4.0/5 "Great!"
      I have already arranged the money through some other sources like its directly from the car manufacturer finance itself, so I have not taken the personal loan with the Axis bank. The services are really good with the Axis bank and the rate of interest was around 9%, which was not okay for me.
      Was this review helpful? 0
      , gurgaon
      Reviewed on May 27, 2017
    • HDFC Bank Car Loan
      "Convenient banking"
      0.5 5.0/5 "Blown Away!"
      The process for the car loan was also a smooth process and I had to difficulties in the documentation. HDFC Bank has always been providing the best of services and the deal on the interest rate and processing charges is affordable and the after loan process is smooth too.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on May 27, 2017
    • Kotak Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      There is no lacking on the service part of Kotak Mahindra. They came directly to my place and done the entire process without giving any inconvenient. I am happy about that, its been a year my loan is running. Being a self employed person they came least interest rate of 9.5% it is good.
      Was this review helpful? 0
      , chennai
      Reviewed on May 27, 2017
    • L&T Finance Car Loan
      "Service has to be changed"
      0.5 1.0/5 "Really Bad"
      L & T finance limited executives are not responding well. When I went to foreclosure my loan, they said I have many to late payment charges but I did not do that. Then I raised the complaint to their nodal officer to release my NOC letter,after several complain my issue was sorted out.
      Was this review helpful? 0
      , chennai
      Reviewed on May 27, 2017
    • ICICI Bank Car Loan
      "Hassle free process"
      0.5 4.5/5 "Excellent!"
      ICICI interest rate is high for my new car because it was launched newly at the time, but for other car interest rate was good. ICICI sanctioned 100% of loan at on road value. Post process of my loan is excellent, my ECS is getting debited automatically.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 27, 2017
    • Bank Bazaar Customer Support
      "Wonderful"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com is good , where I can get information about every bank. I am using Bankbazaar.com from the last one year of time for my financial information. I would like to say that the response is good one with the Bankbazaar.com.
      Was this review helpful? 0
      , chennai
      Reviewed on May 26, 2017
    • Axis Bank Car Loan
      "Good"
      0.5 4.0/5 "Great!"
      Due to some personal reason, I have not taken the car loan with the Axis bank and the customer service was fine one with the Axis bank and the response is also good one with them. In future, I would like to go ahead with the Axis for the car loan.
      Was this review helpful? 0
      , chennai
      Reviewed on May 26, 2017
    • Bank Bazaar Customer Support
      "Good"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com had helped me in a good way, I am using it from the last one year of time. I would like to say that the website of the Bankbazaar.com is easy to access and I want to say everything is fine with the Bankbazaar.com, also there are no hassle.
      Was this review helpful? 0
      , jaipur
      Reviewed on May 26, 2017
    • Sundaram Finance Car Loan
      "Best"
      0.5 5.0/5 "Blown Away!"
      I had postponed the plan of getting the car loan for some other reason, so I did not go ahead with the Sundaram finance limited. Rate of interest and everything was okay for me and , I would like to go ahead with Sundaram finance limited.......
      Was this review helpful? 0
      , jaipur
      Reviewed on May 26, 2017
    • HDFC Bank Car Loan
      "Better "
      0.5 4.0/5 "Great!"
      I had made an inquiry with the HDFC bank to get the car loan and the rate of interest was good one with the HDFC bank, also the customer service worked in a better way. In future, I would like to go ahead with the HDFC bank , if I am in need of their assitance.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 26, 2017
    • Bank Bazaar Customer Support
      "Better "
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com is needful for me also I came to know about it through online search. Customer service is good one with them and I got the call from them very next day itself, also the response that I received from bankbazaar.com is really great.
      Was this review helpful? 0
      , chennai
      Reviewed on May 26, 2017
    • Axis Bank Car Loan
      "Better "
      0.5 4.0/5 "Great!"
      I had not taken the car loan from the Axis bank because I had arranged the funds from my end. I got the rate of interest as around 9% and I was okay with that and the customer service was also fine one with them. There are no drawbacks with them absolutely..
      Was this review helpful? 0
      , chennai
      Reviewed on May 26, 2017
    • Bank Bazaar Customer Support
      "Very good and customer friendly"
      0.5 4.0/5 "Great!"
      Experience is good with the Bankbazaar.com and am with them from the last three months of time. Website of the Bankbazaar.com is easy to access and the response is very good one with them and I have not found any issues with them till now.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 26, 2017
    • Axis Bank Car Loan
      "Best"
      0.5 4.0/5 "Great!"
      I do have some other personal reason and that's why I have not taken the car loan with the Axis bank. Customer service and other things are perfect with them. Rate of interest was around 9.7% and the customer service was fine one with them.
      Was this review helpful? 1
      , bangalore
      Reviewed on May 26, 2017
    • HDFC Bank Car Loan
      "Satisfactory"
      0.5 3.0/5 "Satisfactory"
      The rate of interest for the HDFC bank car loan is high like its around 13% The services are quite fine with them. My car loan .disbursement took 15 days of time documentation was really bad with them it was very lengthy process, It would be good if they reduces rate of interest for used car loans and documentation part.
      Was this review helpful? 0
      , jabalpur
      Reviewed on May 26, 2017
    Common Loader Icon
  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.