If you are looking for prepayment of your HDFC home loan online and its process, you have come to the right place. In this article, we will tell you the process by which you can prepay your existing HDFC home loan. Read on!
HDFC home loan prepayment online: Things you should know
Before proceeding with HDFC home loan prepayment online, you should know the following:
- If you are exploring HDFC home loan prepayment at an early stage of your home loan, then, the savings on interest rate will be more.
- You will have money for all your immediate and short-term needs.
- If you do not have any loan higher than your HDFC home loan, prepaying it makes sense.
- There is no prepayment charge for home loans with floating rate of interest. There are prepayment charges levied on home loans with fixed rate of interest in case of refinancing.
Also read all about the drawbacks and benefits of prepayment of home loan
HDFC home loan prepayment: Various ways
Increase your HDFC home loan EMI amount
Increasing your EMI amount also results in HDFC home loan prepayment. This can be done by asking HDFC to change the EMI amount. Once done, you can make the HDFC home loan prepayment online by auto-debit or net banking. If you are in a job that shows steady growth and increase in monthly income, increasing the EMI is easily doable, where the extra money can be used to pay off the HDFC home loan.
Do part-payment of HDFC home loan
By making a part-payment of your HDFC home loan over and above your EMI, you save interest on the loan as the principal amount gets reduced. Part payment can be made, whenever you have funds available or even at regular intervals if you plan it. By doing a HDFC home loan part prepayment online you can:
- Reduce your loan tenure
- Reduce EMI amount and maintain the loan tenure
Do a foreclosure of HDFC home loan
This is when you pay the entire outstanding HDFC home loan prepayment online at a time and close the HDFC home loan that you have taken. Note, foreclosure involves some charges.
See also: How to check HDFC home loan status online?
HDFC home loan prepayment: Charges associated
There is no HDFC home loan prepayment charges for home loans with floating rate of interest.
Prepayment charges of 2% of the amount to be prepaid are levied for home loans with fixed rate of interest in case of refinancing (where, to prepay, you borrow money). No prepayment charges are levied if you prepay your housing loan with your own money.
See also: All about HDFC home loan login
HDFC home loan prepayment: Foreclosure process
- First, inform HDFC Bank about your plan to foreclose the home loan by submitting ID proof and loan statement.
- You will get a reply from HDFC on the outstanding amount.
- Once the outstanding amount is paid, you will get an acknowledgement letter.
- On closing the loan, HDFC will give an NOC, no dues certificate and return the original property papers.
- Once the HDFC home loan foreclosure is done, check whether your CIBIL records are updated.