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 …
Besides, can I reduce my car loan EMI?
Yes, you can reduce your car loan EMI; talk to your lender to negotiate a lower EMI and higher repayment tenure. You can make a higher down payment so that your loan amount is reduced and in turn, you get a lower EMI amount. You can go for refinancing or restructuring of loans or opt for a balance transfer.
One may also ask, can you repay car finance early?
To pay off your finance early, you’ll need to contact your provider to ask them for a settlement figure. This is the amount you’ll need to pay to clear your finance and will include any early repayment fees. These fees will be set by the lender and will depend on how much you owe.
Does prepayment affect credit score?
Part-payments can bring down the outstanding amount, thereby lowering the interest paid on your loan. Full prepayment will boost your credit score. Loan pre-closures don’t have a negative impact on your credit score.
How to close car loan
- Step 1: Pay the dues. Keep careful track of your monthly payments towards paying off the loan. …
- Step 2: Visit your lender. Visit your bank’s loan centre and submit a request for loan closure. …
- Step 3: Remove hypothecation. …
- Step 4: Receive new car documents. …
- Step 5: Check credit report for updates.
How to Make HDFC Loan Payment Online at Paytm?
- Go to HDFC loan payment page on Paytm.
- Enter your Loan Account Number.
- Click on ‘Get Payable Amount’
- Check the payable amount and choose the payment method of your preference Proceed to make the payment.
- You are done with it.
Opting for a longer tenure will automatically bring down your EMI. For example, you will pay an EMI of Rs 2028 for a 5-year loan of Rs 1 lakh at 8% interest. But if you extend the tenure to 7 years, you can bring down the EMI by almost 25% to Rs 1559. HDFC Bank offers flexible tenures of up to 7 years.
Whether you have taken a personal loan, home loan, car loan, or any other loan product from HDFC, the bank allows you to repay the remaining EMIs at one go. … Repaying all EMIs at once is known as pre-closing the loan account.
Car Loan EMI of HDFC Bank is a fixed amount that you pay each month towards the repayment of your car loan till the end of tenure. Lowest EMI offered by HDFC Bank is ₹ 1,860 per lakh loan amount at lowest car loan interest rate of 8.65%.
Paying off your car loan early frees up a good chunk of extra cash to keep in your pocket. … If your car loan’s rate is low compared to other types of debt, like credit cards, consider paying off the debt with the highest interest rate first. That way you save more on total interest owed.
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.
Pre-closing a car loan before the end of the tenure can negatively affect your credit score. Usually, a borrower decides to prepay or pre-close a car loan because he or she has come into a sudden inflow of cash and don’t want to pay EMIs anymore. Pre-closing your car loan can help you save up on interest.
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. Though it is a wise decision to pay-off your loan, you must make sure that the money is being put to good use.
Both of these options have their own pros and cons. A shorter loan tenure will mean that you will be paying a lower amount of interest for the availed. The short tenure however means that the amount to be paid as EMI will be much larger. … Car loans on the other hand have a lower rate of interest and a longer tenure.