How to Close an Insta Loan from the HDFC Bank?
Last Updated : July 27, 2020, 3:07 p.m.
HDFC Bank provides an Insta Loan to HDFC Bank credit card users. It is a pre-approved loan that you can get based on your income, repayment potential and credit card repayment track. The loan can be repaid in Equated Monthly Installments (EMIs) over the tenure you choose to service the debt. If the loan is sanctioned within your HDFC credit card limit, your credit limit will get blocked and the loan EMI will become a part of the credit card bill. In case the loan is sanctioned over and above the credit limit, both credit card bill and EMI will be paid separately. You can, however, close this Insta Loan before maturity by making the necessary payments. Closing the HDFC Insta Loan before the scheduled close can save on your interest payments. Read the post and know how to close an Insta Loan.
HDFC Bank Credit Card EMI Calculator
To plan your HDFC Insta Loan repayment schedule, you can use the online EMI tool. You can use the HDFC EMI calculator by following the steps below.
- Visit the HDFC Bank official website
- Log in to your credit card account
- Choose the type of loan
- Enter the loan amount you need
- Enter the interest rate in per month or per annum
- Select the tenure from 12 to 48 months
- Enter the loan booking date
- Your statement date
- And then Click to ‘Calculate’
The calculator is used to help the borrower pay the loan on time without any hassle.
Prepayment of HDFC Insta Loan
If you need to close the HDFC insta loan early, you can do a prepayment. In a loan prepayment, you need to pay the outstanding balance amount in full before the maturity of the HDFC Insta Loan. For the pre-closure of the Insta Loan, HDFC Bank charges a prepayment fee of 3% of your outstanding balance which you have to pay along with prepayment amount. Understand the HDFC Insta Loan prepayment better in the example below.
Suppose your credit limit is INR 3 lakh from which you borrowed an Insta Loan of INR 2.5 lakh at an interest rate of 12.00% per annum for 4 years. And now after 2 years of the EMI payment, you have decided to ease the burden by doing a loan prepayment. Check out the table below to know how much you’ll save after the HDFC Insta Loan prepayment.
| Particulars | Details |
|---|---|
| Loan amount | INR 2,50,000 |
| Interest rate | 12.00% |
| tenure | 4 years |
| EMI amount | INR 6,583 |
| Total interest outgo | INR 66,006 |
| Balance loan amount after 2 years | INR 1,39,854 |
| Paid interest in 2 years | INR 47,858 |
| Prepayment fee | 3% of 1,39,854 = INR 4,195 |
| Savings after prepayment | INR 13,953 (66,006 - 47,858 - 4,195) |
Things to do after HDFC Insta Loan closure
When your Insta Loan is paid in full, you have to collect the No Objection Certificate (NOC) from the branch, so your loan account will get closed and it is reported to the credit bureau. The NOC can help you deal successfully with the possibility of wrong information getting reported to the bureau. You can dispute this error showing the NOC bearing the seal and signature of the competent HDFC Bank official. If your credit score has come down because of this, it can go up with you disputing the error with NOC. See your duty is not only to pay the loan but also to complete the formalities.