You can pay the personal loan in equated monthly installments (EMIs) for a maximum of 5 years. But if you want to close your loan fast, you can take the route of either prepayment or part payment. The prepayment means the payment of the entire loan outstanding during the loan tenure. Whereas, part payment is defined by the name itself. You can pay some chunk in parts and get the interest burden reduced. HDFC Bank charges a low processing fee for the same. The fee can be minimum of up to 2% of the outstanding amount. The prepayment charge depends on the time you want to prepay. To know the prepayment charges of HDFC personal loan, look at the table below.
|Prepayment Period||Prepayment Charges||Fee Payable on an Outstanding Balance of 1 Lakh (In INR)||Fee Payable on an Outstanding Balance of 1 Lakh Inclusive of 18% GST (In INR)|
|13 to 24 month||4%||1000.04||1,180.05|
|25 to 36 month||3%||1000.03||1,180.04|
|Above 36 months||2%||1000.02||1,180.02|
Things to Keep in Mind Before Prepaying the Loan
The prepayment is allowed only after the successful payment of the first 12 EMIs. The part payment amount can be a maximum of 25% of the principal outstanding. And, you can make part payment once in a financial year and twice during the loan tenure. You can use the HDFC personal loan calculator to estimate the benefit of pre or part payment.