Can I close my HDFC personal loan before 1 year (12 months)? This is what the question one of my blog readers asked a few days back. As I took HDFC personal loan a couple of years back, I can answer this question from my own experience. Although a personal loan is one of the easiest ways to finance your emergency needs, it is quite difficult to close any personal loan quickly.
To answer the question, one can't close your HDFC personal loan before completing 12 months. That means you have to pay at least 12 EMI before you approach HDFC bank with your personal loan preclosure application. Any payment above Rs. 49000/- should be made vide Account Payee Cheque / Pay order /Demand draft.
Do you know what are the HDFC Personal Loan Pre-closure charges? Here are a few details.
Another key point is that one can't close HDFC personal loan before 1-year completion. In case you are a self-employed person, then it will be 6 months.
Means first year you have to pay the EMIs so that banks can squeeze you to the max. This is the clause made for the benefit of the bank only. But you have signed the terms & condition while taking the personal loan from HDFC bank.
Anyway, "Jab Loan liya he, to chukana to parega" :) . Let's check out the steps and facts you have to take after you complete 1 year of your personal loan.
Step #2: Next is to ask the HDFC customer care person about the branch in your city where you can close the HDFC personal loan. You cannot close the loan from any branch, but if you want to take the loan then they can visit your doorstep also. If you are in Hyderabad, then you have to visit the HDFC Begumpet branch to close your personal loan.
Step #3: Although RBI has instructed banks to waive off the pre-closure charges banks are smarter than RBI as they will charge you 4% closure charges with some valid clause that you may not understand. So be ready to pay an extra 4% amount to close to your loan.
Step #4: Which documents should I carry at the time of visiting the HDFC bank? Carry necessary documents to close your HDFC personal loan like Xerox copy of ID proof, the amount can be paid in the form of Cash/ Cheque and Loan account number.
Here one point to note is that it is not necessary that the amount need to pay from your account only. You can pay the loan balance from your relative's or friends' account as well. In that take them to the bank with you so that they can issue the cheque for your personal loan closure.
After all the steps completed successfully, the bank will provide you an acknowledgment letter which you should keep carefully. The final closure agreement document comes in a few days after the closure of the loan.
How much interest you have to pay for the days between EMI date and foreclosure date in addition to the foreclosure charges.
One of the blog readers, Sreenivas has shared a very useful calculation of interest which will definitely increase your awareness. Here is the Example:
EMI date is 5th, and you are closing the loan on 25th at that time lets say the principal remaining is 3,00,000/-, let's say interest rate per annum is 14%, then
The interest for 20 days (5th to 25th) = 3,00,000 * (14 / 100) * (20/365) = 2301.3
Hence the total amount you need to pay to the bank would be = principal + foreclosure charges + service tax on foreclosure charge + interest for the balance days (which is calculated as above).
If you have any doubts regarding HDFC personal loan closure, then you can call to HDFC bank personal loan customer care number by visiting the page.
If you have also closed your HDFC personal loan, then you can write a comment below and share your experience o help our readers. Thank you for sharing this experience within your Facebook, Twitter profiles.
To answer the question, one can't close your HDFC personal loan before completing 12 months. That means you have to pay at least 12 EMI before you approach HDFC bank with your personal loan preclosure application. Any payment above Rs. 49000/- should be made vide Account Payee Cheque / Pay order /Demand draft.
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| How To Close HDFC Personal Loan Before 1 Year |
Do you know what are the HDFC Personal Loan Pre-closure charges? Here are a few details.
- 13-24 Months - 4% of Principal Outstanding
- 25-36 Months - 3% of Principal Outstanding
- 36 Months - 2% of Principal Outstanding
Things To Know Before Closing HDFC Personal Loan
The very first thing I want to say that, you can't close HDFC personal loans online. You have to visit your nearest HDFc bank branch or the main branch of that city to apply for personal loan closure manually.Another key point is that one can't close HDFC personal loan before 1-year completion. In case you are a self-employed person, then it will be 6 months.
Means first year you have to pay the EMIs so that banks can squeeze you to the max. This is the clause made for the benefit of the bank only. But you have signed the terms & condition while taking the personal loan from HDFC bank.
Anyway, "Jab Loan liya he, to chukana to parega" :) . Let's check out the steps and facts you have to take after you complete 1 year of your personal loan.
Steps to Close HDFC Personal Loan (My Experience Shared)
Step #1: First of all, call the HDFC personal banking number from any city 61616060. You just have to add your city code to this number and call them. You can ask them about how to close HDFC personal loan, to understand whether any specific process for your city or not.Step #2: Next is to ask the HDFC customer care person about the branch in your city where you can close the HDFC personal loan. You cannot close the loan from any branch, but if you want to take the loan then they can visit your doorstep also. If you are in Hyderabad, then you have to visit the HDFC Begumpet branch to close your personal loan.
Step #3: Although RBI has instructed banks to waive off the pre-closure charges banks are smarter than RBI as they will charge you 4% closure charges with some valid clause that you may not understand. So be ready to pay an extra 4% amount to close to your loan.
Step #4: Which documents should I carry at the time of visiting the HDFC bank? Carry necessary documents to close your HDFC personal loan like Xerox copy of ID proof, the amount can be paid in the form of Cash/ Cheque and Loan account number.
Here one point to note is that it is not necessary that the amount need to pay from your account only. You can pay the loan balance from your relative's or friends' account as well. In that take them to the bank with you so that they can issue the cheque for your personal loan closure.
HDFC Personal loan closure charges
- 13-24 Months - 4% of Principal Outstanding
- 25-36 Months - 3% of Principal Outstanding
- 36 Months - 2% of Principal Outstanding
After all the steps completed successfully, the bank will provide you an acknowledgment letter which you should keep carefully. The final closure agreement document comes in a few days after the closure of the loan.
HDFC Personal Loan Closure FAQs
Are there any additional charges for loan repayment?
The additional charges (if any) are applicable in case you default or in case of SWAP (i.e. change the repayment mode). The charges are updated and can be viewed in the Fees & Charges section in the Bank’s website of each loan product.
One of the blog readers, Sreenivas has shared a very useful calculation of interest which will definitely increase your awareness. Here is the Example:
EMI date is 5th, and you are closing the loan on 25th at that time lets say the principal remaining is 3,00,000/-, let's say interest rate per annum is 14%, then
The interest for 20 days (5th to 25th) = 3,00,000 * (14 / 100) * (20/365) = 2301.3
Hence the total amount you need to pay to the bank would be = principal + foreclosure charges + service tax on foreclosure charge + interest for the balance days (which is calculated as above).
If you have any doubts regarding HDFC personal loan closure, then you can call to HDFC bank personal loan customer care number by visiting the page.
If you have also closed your HDFC personal loan, then you can write a comment below and share your experience o help our readers. Thank you for sharing this experience within your Facebook, Twitter profiles.
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