HDFC Bank enables a personal loan borrower to make a pre-closure or a pre-payment of loan. However, you will be able to prepay your HDFC personal loan only after 12 months after you have procured your loan and after paying 12 EMIs plus the foreclosure charges that may be applicable. If you meet this requirement, you can repay your personal loan before the original due date and close your loan early.
If you are a salaried applicant, you can pre-pay your HDFC Personal Loan only after paying 12 equated monthly installments completely.
The pre-payment charges for salaried applicants are as follows:
You can pre-close or pre-pay your HDFC personal loan at a nominal price by informing the bank beforehand. You will have to keep in mind that this needs to be done only after careful evaluation of your financial condition.
Pre-payment or pre-closure refers to the process of a borrower paying his or her loan fully or in parts before the actual due date. While thinking of making a pre-payment, you should analyses if you will be asked to pay any pre-payment penalty by your lender and if you have made sufficient savings to pay the loan early.
If the pre-payment penalty is very high, you should reconsider your decision to prepay your personal loan. You may also see if your pre-payment penalty amount is higher or lower than the entire interest amount that you would save if you repay your loan early. It makes sense to pre-pay your loan if the penalty is lower than your loan interest amount. On the other hand, if the penalty is higher than your loan interest amount, you will end up spending more on your pre-payment, which is bad for your finances.
You will also have to assess if you have adequate money in your account so that you do not have a tough time after you repay a huge sum of your personal loan amount. You should have funds in your personal bank account for other expenditures.
HDFC Bank is a top-notch private bank in India that extends high-class financial support to every person in the nation. The bank has a variety of products ranging from deposits and loans to insurance and Demat. You can approach the bank for any of your needs and receive excellent assistance from the bank.
The bank offers an outstanding personal loan product which can be utilized for any purpose. You can enjoy a host of benefits with this product from the bank.
In a prepayment, you will be paying off a big chunk of the outstanding loan amount at one go which reduces your overall outstanding amount and thus lowers your EMIs. A presclosure, on the other hand, is the process of paying off your entire loan amount ahead of its tenure. In the case of a presclosure, the entire debt is cleared off thus closing the personal loan account.
HDFC Bank usually takes around 15 working days for sending the confirmation for a pre-closure of a personal loan account. You will get a notification on your registered email ID and mobile phone number once the preclosure is confirmed.
In case of non-payment of the entire amount, the bank might mark the loan account with the ‘Settled but not closed’ status. It is advised to get in touch with the bank and get a clarity about the status of the personal loan account.
Yes, it is important to collect the No Objection Certificate or NOC after the closure of the personal loan account.
It is important to collect the No Objection Certificate or NOC after the closure of the personal loan account as the certificate acts as a legal document denoting the closure of the loan account.
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