Personal Loan Closure in HDFC Bank
Loan Pre-closure refers to the process of a borrower paying the loan fully before the actual due date.
Feeling of having repaid your loans is very satisfying.
Early closure of your Personal loan comes up with various advantages including saving a lot on the interest amount as these loan carries a very high interest rate.
Considering the fact that Personal loan interest ranges from 13% to 20%; quick closing of your personal loan is the key to save money spent on EMI.
A personal loan normally have a lock in period of about 1 year, after which the entire balance amount can be prepaid.
In this post, we will see how to Preclosure your HDFC personal loan
1. Loan Pre-closure charges: To close a loan early, you need to pay a pre-closure charge. Each bank will have a different percentages for this. In HDFC it is based on the months, for example – if it is between 13-24 Months – 4% of Principal Outstanding, if it is between 25-36 Months – 3% of Principal Outstanding and for more than 36 Months – 2% of Principal Outstanding.
2. Outstanding amount: Know your Total Outstanding Amount including preclosure charges by calling the HDFC customer care. You can get the number from this link. This call center customer service is available between 8:00 a.m. to 8:00 p.m., 365 days a year.
3. Get the nearest HDFC Bank Retail Loan Service Centre address: In HDFC, you can’t pre-close your Personal Loan online or any HDFC branch. You need to visit the HDFC Bank Retail Loan Service Centre to close your loan. You can get the address from Customer Care or from HDFC website.
4. Once you get the retail loan branch details – take your government issued identification document, loan account number for verification. Bank personnel will verify this document and collect Cheque/DD/Cash for the remaining outstanding loan amount. Note that cash beyond Rs. 49,000 will not be accepted for loan repayment.
Once you closed your personal loan, get pre-closure acknowledgement receipt from the bank and also collect all your documents if you have taken loan against property / securities etc.