Bank loan repayment before maturity date is allowed ?
Javed Shaikh
(Querist) 03 April 2014
This query is : Resolved
Hi,
I have a two wheeler loan from HDFC Bank.
I had taken it on 1st Jan 2013 for 36 months. I have duely paid all my EMI's till date which falls on 11th of every month. I want to finish off this liability now my repaying the loan amount in full. Is that allowed ? If yes then will I make any monetary gain if the payment is done before maturity date ?
PLease let me know. Thanks
Rajendra K Goyal
(Expert) 03 April 2014
you can pay before time.
You will be saving interest and prepayment penalty would not be charged.
Anirudh
(Expert) 03 April 2014
There may be some charges for premature repayment of the loan amount. You have to check up with the Bank to get the correct picture, since the conditions vary from bank to bank.
Isaac Gabriel
(Expert) 04 April 2014
Normally banks charge the full interest had the loan is discharged as per schedule,if it is foreclosed before the due date.
Advocate. Arunagiri
(Expert) 04 April 2014
Normally the banks will charge for foreclosure. However you can sit with them for One time settlement and demand reduction in the interest portion.
Rajendra K Goyal
(Expert) 04 April 2014
Banks charge day to day interest, no question arises of interest rebate in for-closer. No extra interest would be charged.
T. Kalaiselvan, Advocate
(Expert) 05 April 2014
I agree with the experts opinions, you may talk t the bank officials and arrive at a mutually agreed amount and foreclose the loan.
T. Kalaiselvan, Advocate
(Expert) 05 April 2014
I agree with the experts opinions, you may talk to the bank officials and arrive at a mutually agreed amount and foreclose the loan. Generally the bankers will be charging the entire interest amount even in the case of foreclosure but it depends again on the situation explained.
