Everyone wants to get the best offers on their loans and their payments. Still, numerous financial institutions in India offer multiple interest rates and kinds of loans. So, you might be curious about the top 5 banks that provide the best offers for loan prepayment. Household names such as the HDFC Bank home loan and many more renowned banks are listed. Continue reading to know more.
Things to Keep In Mind about Loan Prepayment
If you look at the loan statement, you may see that interest is a significant portion of your EMI. If you don’t pick your interest rate correctly, loans might significantly increase your liabilities. The Loan Prepayment option allows you to make things right.
The term “pre-payment” refers to the full or partial payment of the outstanding loan debt. In these inflationary times, making a full upfront payment may not be for everyone. However, it is possible to arrange and implement a loan portion pre-payment in real-time! With this, your interest load will be reduced overall.
It’s a good idea to examine the portion prepayment rules of lenders before you take out a loan to choose the one that charges the least or nothing for this. Existing borrowers should have the same experience. In this case, individuals should choose a balance transfer to lower their debt load.
- HDFC Bank Loan Prepayment
The HDFC Bank loan portion pre-payment service is available only if you have successfully paid all 12 of your EMIs. Additionally, it permits a partial payment of up to 25% of the outstanding amount, but only once a year and twice throughout the loan term. Part pre-payments on loans made between 13 and 24 months of loan term are charged with 4 percent interest. If you pay in instalments starting in the 25th month and continuing for 36 months, the HDFC bank home loan interest rate will drop by 2-3%.
- YES Bank Loan Pre-Payment
Like HDFC bank home loan, YES BANK permits portion pre-payment once the first 12 EMIs have been paid. Part prepayment rules for a YES BANK loan depends on the current status of your loan. If the loan is in the range of 13th to 24th month, the bank will enable you to prepay 20% of the remaining principle. You might prepay up to 20% of the outstanding principle once the loan has been in effect for up to 36 months. When the loan repayment is in its 37-48 months or 48-60 months, you may make partial payments of up to 25% of the loan balance. A fee of 2% of the partial payment amount is also due.
Once a year, you may prepay a portion of a loan. As stated by the YES BANK, there will be no change in your monthly payment as long as the prepayment requirement is met. However, this is a good thing for you! After paying off a portion of your loan, paying the same EMI will lower interest bills.
- IDFC First Bank Loan Prepayment
As soon as you pay the first three EMIs on your loan, IDFC First Bank offers a Smart Loan Facility that enables you to make partial payments of up to 40% of the amount. The bank charges 2% of the part payment amount for this service.
- Bajaj Finserv Loan Prepayment
Part prepayment fees for Bajaj Finserv loans are computed at 2% of the amount repaid. If you pay the first 12 EMIs of the loan on time, the lender will likely enable you to prepay some of the debt.
- SBI Loan Prepayment
Part-payment on loans is charged at 3% by the country’s biggest lender, the State Bank of India (SBI). If you’ve paid the first 12 EMIs on time, then only you may opt for this.
Taking any loan, whether it is a home loan or a personal loan, from the banks mentioned above is your best bet on getting the best pre-payment offers as suggested by Apnapaisa. While this is important, these banks also offer great interest rates, such as the HDFC bank home loan interest rate, which you should check before applying for any loan.