Does HDFC allow prepayment of personal loan?

If you have taken a personal loan from HDFC Bank, the bank will allow you to make prepayment or pre-closure ahead of the tenure. The bank has a lock in period of one year within which you can neither pre-close your account nor make prepayments.

What is the prepayment amount for HDFC personal loan?

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: 4% of the outstanding principal amount for 13 to 24 months. 5% of the outstanding principal amount for 25 to 36 months.

Does HDFC charge prepayment?

Floating Interest Rate: No charges for Individual Borrowers; Other than Individual Borrowers, 2% on the amount being prepaid within 6 months; above 6 months, the borrower has the option to prepay up to 25% (above 25% attracts 2% prepayment fee) of the opening principal amount every financial year without any prepayment …

Can I prepay my personal loan without any extra charges?

Borrowers may be allowed to foreclose or prepay their loan 6 months after the date it has been disbursed, without any prepayment penalty. A charge of 2.5% + GST will be levied on any prepayment amount that is over 25% of the principal due. Part prepayment can only be done once in a year.

Can I pay partial payment in HDFC personal loan online?

Also, no part payment should exceed 25% of the outstanding principal amount.

Is it good to pre close personal loan?

Pre-closure is the process when one repays the loan before the loan tenure ends. Some lenders do levy a penalty for preclosing the loan. However, pre-closure at times does help in lowering the interest rates and debt burden. The banks have different lock-in periods before which one can close the loan.

Does prepayment reduce interest?

Home loan prepayment: If there is an opportunity to prepay a part of the home loan before the end of its tenure, then it can reduce the overall interest payments. Banks charge a prepayment penalty fee for such an allowance.

How can I reduce my personal loan tenure in HDFC?

You are here with the facility of PMII/ MI change or the change in repayment* tenure according to your convenience. Simply mail us at, [email protected] or visit your respective branch with your request details and loan application number. Call your respective Relationship Manager.

How are prepayment charges calculated?

You can calculate the prepayment charges by determining the different between the original interest rate and the current interest rate. For example, if the original interest was 7.5% and the current rate is 5.5% the difference is 2%. Multiply the principal amount by the difference in percentage – 200,000 x 0.02 = 4000.

Is prepayment allowed in personal loan?

A personal loan generally has a lock in of about one year after which the entire outstanding amount can be prepaid.

Does prepayment affect CIBIL score?

No, your credit score will not reduce if you prepay your loan.

Can I pre close HDFC personal loan online?

You will not be able to foreclose the HDFC Bank Personal Loan online. You will have to visit the branch and close the account after getting the information about the outstanding loan amount and penalties, and other charges collected by the Bank for such preclosure.