HDFC Home Loan Prepayment Online: Any type of loan is a debt that you generally want to pay off as quickly as possible (ideally in advance or before the due date). Prepayment enables you to pay off your mortgage (in full or in part) before the end of the loan term. If the customer has more money they often choose to pay in advance.
HDFC Home Loan Prepayment Point
There are several ways to pre-close a mortgage loan. You can pay the entire amount at once or just part of it. It all depends on how much money you have. Before you start paying in advance, you should consider the following:
- Analyze your short, medium and long-term cash flow needs. Don’t risk your emergency fund by trying to pay off your mortgage.
- Also determine whether investing in mutual funds is more advantageous than forgoing interest payments or foreclosure.
- Pay off your other costly debts sooner.
- If your mortgage is in its early stages, your savings will be greater with an HDFC home loan rate.
- Fixed-rate mortgage loans carry a prepayment penalty.
- You can easily prepay HDFC home loans online using the customer portal.
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How to HDFC Home Loan Prepayment Online
Follow the steps below to prepay HDFC home loan.
Partial Deposit
Partial prepayment of your debt is an option when funds are available or at regular intervals. If you pay some amount in addition to your EMI, the principal amount, interest and loan period can be reduced. After making an advance or partial payment, you have two options for your additional EMIs:
- You can reduce your monthly EMI payment and still maintain the loan tenure.
- You can reduce the loan tenure by keeping the EMI amount the same.
Mortgage’s Trial (Foreclosure)
If you decide to pay your home loan and all associated interest to the bank in full at once, you are opting for foreclosure. There may be fees associated with prepayment. Each bank has different rates.
Increase EMI Amount:
Another easy way to prepay your home loan is to pay more than the EMI amount per month of the actual loan. This is one of the most common methods to prepay a mortgage loan. As the years go by, your monthly income increases over time. You can use the additional income to pay the higher loan EMI. To change your EMI amount, you can contact the bank from which you took the loan.
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HDFC Home Loan Prepayment Charges
If you are thinking of prepaying HDFC Home Loan, then you should know what will be the HDFC Home Loan Prepayment Charges. However, home loan prepayment charges may vary depending on the terms and conditions set by the bank. It depends on many factors like loan amount, repayment period etc. However, if the customer pays the home loan on time, HDFC Bank charges prepayment charges.
You can easily refund in advance the HDFC real estate product online via the client portal.
| Bank | Interest Rates | Processing Fees | EMI Per Lakh |
| HDFC Home Loan | 8.50% – 10.05% | 0.50% | Rs. 758 |
Pre-Closing Fees for Fixed Rate and Blended Rate Mortgage Loans
In case of balance transfer/refinancing: 2% of the original amount plus applicable taxes, duties and legal fees. (for individual borrowers)
For borrowers other than individual borrowers (where companies, sole proprietorships or HUFs act as co-applicants):
- In the first 6 months: 2% of the amount excluding taxes, duties and legal fees.
- For early repayment of the loan after the first 6 months and up to 36 months: Zero for early repayment of up to 25% of the initial amount of the loan per year.
- Amounts prepaid in excess of 25% during a financial year will incur a prepayment fee of 2% per financial year.
- After the first 36 months: zero.
Read Also: Home Loan Closing Documents List
HDFC Home Loan Pre-Closing Procedure
Above all, keep your bank informed of your decision to prepay or foreclose. Even if you plan to make partial payments, you should inform the bank as they will change the payment schedule and deadlines accordingly.
HDFC Home Loan Foreclosure Process
When you are ready to foreclose, make a list of all the documents you provided to the bank as part of the loan application. This will help them retrieve all the details from their records once the loan is repaid.
A preliminary list of documents would include:
- Certificate of ownership
- Deed of sale of the property
- Builder-buyer contract
- Transfer deed
- Tripartite agreement
You will also need to present your identification and loan statement, as well as a letter requesting loan closure.
The bank then bills the full unpaid amount plus interest and penalties.
