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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    Good to Know
    Eligibility Criteria
    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
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.95% Floating
    ₹500 to ₹7000 + applicable tax
    1Cr Max
    7 Years
    Response Time Within 30 minutes
    Paperless approval option available
    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
    What you'll love
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    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.25% - 9% Fixed
    Up to ₹4,720 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
    What you'll love
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    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    13.50% - 15% Fixed
    Up to ₹5,310 One time fee
    75K Min
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free Paperless approval option available
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    9.15% - 9.30% 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
    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
    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
    What you'll love
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    Perks
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    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.85% Floating
    ₹500 to ₹7000 + applicable tax
    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 28316 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

    • Bank Bazaar Customer Support
      "Apply for a loan "
      0.5 5.0/5 "Blown Away!"
      This is a very fast and good service, for every person, we are very much thankful bank bazaar as it help us..so easy and understanding application every one can use it for apply new loan as per requirement more important every one can trust bank bazaar as it provides good service. Thanking you.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jul 22, 2017
    • Bank Bazaar Customer Support
      "Very Good service"
      0.5 4.0/5 "Great!"
      I am aware of bank bazaar through web search. I am with bank bazaar for more than 5 years. I have got more than 2 products through bank bazaar. The bank bazaar helped me to choose a policy and not only the policy, it helps us to choose the best products in the market. The website of bank bazaar is easy to use and user friendly. I am satisfied using bank bazaar service.
      Was this review helpful? 1
      , chennai
      Reviewed on Jul 19, 2017
    • Dena Bank Car Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      I didn't got the car loan with Dena bank, because they never gave any kind of response in concern to my car loan application. The bank branch is also located very long from my place, so that was the reason i haven't got the car loan with Dena bank. The customer service and the response need to be improved with Dena bank. The rate of interest is nominal with Dena bank.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 19, 2017
    • HDFC Bank Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      Initially HDFC bank has promised me some thing around 8% of interest rate in concern to my car loan but they have disclosed my loan with 8.65% . They need to stick on their promises. The customer service and the response part was good with Hdfc bank. Within 3 days of time they have disbursed the loan. The rate of interest is low when compared with others.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2017
    • HDFC Bank Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      Initially HDFC bank has promised me some thing around 8% of interest rate in concern to my car loan but they have disclosed my loan with 8.65% . They need to stick on their promises. The customer service and the response part was good with Hdfc bank. Within 3 days of time they have disbursed the loan. The rate of interest is low when compared with others.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2017
    • Bank Bazaar Customer Support
      "Very good service"
      0.5 5.0/5 "Blown Away!"
      The Service is really good with bank bazaar, because within a hour of time I got the call from bank bazaar executive . The place where we can know about all financial products in the market. I came to know about bank bazaar through promotional mails. I am with bank bazaar for more than 3 years. The website of bank bazaar need to specified by differentiating the products. The bank bazaar has offered me a satisfactory service.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jul 19, 2017
    • Dena Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I didn't got the response from Dena bank when I was in need of car loan , so that was the reason I haven't got the loan with Dena bank. The customer service and the response was good with Dena bank. The rate of interest is low with Dena bank and there was zero processing fee offer with Dena bank car loan. The timelines needs to be specified with Dena bank.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2017
    • Bank Bazaar Customer Support
      "Good service"
      0.5 4.0/5 "Great!"
      I know about bank bazaar for past 1 year. The customer service and the response is really good with bank bazaar. The website with bank bazaar is easy to use and user friendly. I get to know about bank bazaar through google web search. I am very much happy with the service rendered by bankbazaar.com.
      Was this review helpful? 0
      , davanagere
      Reviewed on Jul 19, 2017
    • Bank Bazaar Customer Support
      "Very Good service"
      0.5 4.0/5 "Great!"
      The best part I like about bank bazaar is their response , because I got immediate response from bank bazaar in concern to my car loan application. The customer service and the response is really good with bank bazaar. The web site with bank bazaar is easy to use and user friendly. The mobile application of bank bazaar is really helpful and supportive.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jul 18, 2017
    • HDFC Bank Car Loan
      "Good service"
      0.5 2.5/5 "Just OK"
      The HDFC bank executive told that they can do the commercial car loan vehicle only if I am having 5 cars in my name. So that was the reason I haven't got the loan with HDFC bank. The customer service and the response was average with HDFC bank. The rate of interest is nominal with HDFC bank.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 18, 2017
    • Bank Bazaar Customer Support
      "Good service"
      0.5 4.5/5 "Excellent!"
      For about one year I am a customer of bankbazaar.com. I got to know about bankbazaar through google web search. The customer service and the response provided by bank bazaar is really good. The web site of bank bazaar is easy to use and user friendly. I am happy with the level of service offered by bankbazaar.com.
      Was this review helpful? 0
      , pune
      Reviewed on Jul 18, 2017
    • HDFC Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I didn't get the car loan from HDFC bank, because my loan got sanctioned by AXIS bank so that was the reason I haven't proceed with HDFC bank car loan. The rate of interest provided by HDFC is nominal . The customer service and the response was also good with HDFC.
      Was this review helpful? 0
      , pune
      Reviewed on Jul 18, 2017
    • Axis Bank Car Loan
      "Satisfactory service"
      0.5 4.0/5 "Great!"
      I got the quick car loan from axis bank , because they processed the loan within 2 days of time. The customer service and the response is really good with axis bank. The rate of interest is nominal with axis. I am completely happy with the service provided by AXIS also the response provided by them was really good.
      Was this review helpful? 0
      , pune
      Reviewed on Jul 18, 2017
    • Bank Bazaar Customer Support
      "Good service"
      0.5 5.0/5 "Blown Away!"
      Bank bazaar gives very good service to the customers by giving prompt followups to them. The web site of bank bazaar is easy to use and user friendly. The customer service and the response provided by bank bazaar is extremely good. I am completely satisified with the level of service rendered by bankbazaar.com.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 18, 2017
    • Axis Bank Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      The Axis bank car loan process just took 3 days of time. They have approved and disbursed my car loan within 4 days of time. The customer service and the response was very good with axis and the rate of interest is nominal with axis bank and it can be compared with other banks too.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 18, 2017
    • Kotak Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      The service rendered by Kotak mahindra in concern to my car loan was very good. The customer service and the response with Kotak mahindra was really good . They took around 7 days to disburse my car loan . The required loan amount has been disbursed and I am completely satisfied with their service too.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 18, 2017
    • Bank Bazaar Customer Support
      "Good service"
      0.5 4.0/5 "Great!"
      Bank bazaar service is really good. The customer support reaches the customer on time and they gives the appropriate information to the customers. I am aware of bank bazaar through google web search. The customer service and the response with bank bazaar is supportive and helpful . The web site with bank bazaar is easy to use and customer friendly.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 18, 2017
    • Axis Bank Car Loan
      "Below average service "
      0.5 1.0/5 "Really Bad"
      Axis bank doesn't know how to treat the customer they gave a call and spoke to me as if they are doing a favour to me and without completing the call they dropped the call, which again gave me a bitter experience. The customer service and the response need to be improved with Axis bank. They were not ready to listen to the customer query and they were just explaining their terms and conditions on the call.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 18, 2017
    • Bank Bazaar Customer Support
      "Good service"
      0.5 4.0/5 "Great!"
      This is a good service provided by bankbazaar.com to get prior approval after that we planned to get the car . We can save our time and money with this type of online service. thank you bank bazar, I hope my loan request would be acknowledged within a short span of time . I am waitin for your call. ....cahalapathi
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 18, 2017
    • Bank Bazaar Customer Support
      "User Friendly"
      0.5 4.0/5 "Great!"
      I like Bank Bazaar online service is excellent, I normally fill the online application form to check the eligibility of financial products, their executive are very prompt and good in resolve the queries. I am very satisfied to use Bank Bazaar site.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jul 13, 2017
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