Frequent question: What is HDFC car loan foreclosure?

HDFC CredilaForeclosure. Foreclosure refers to the early repayment of the loan in advance of the date for which the borrower is contractually obligated to pay it. Your request shall be welcomed after the expiry of a period of 6 months from the effective date of disbursement, with no foreclosure or prepayment charges.

Can I foreclose my HDFC car loan?

Once you pay off the last EMI, gather all loan documents. Visit your bank’s loan centre and submit a request for loan closure. The bank will issue you loan closure documents, such as closure letter and no dues certificate (NDC) or no objection certificate (NOC).

Is it good to foreclose car loan?

Foreclosing car loan can reduce your credit score: As previously stated, foreclosing a car loan before its tenure can have a negative impact on your credit score. This is because, every time you make EMI payments on time, your credit score improves.

Does HDFC charge foreclosure fees?

HDFC Personal Loan Pre-Closure or Pre-Payment Fees and Charges. … 4% of the outstanding principal amount for 13 to 24 months. 5% of the outstanding principal amount for 25 to 36 months. 2% of the outstanding principal amount for more than 36 months.

What is loan foreclosure?

What is loan foreclosure? Loan foreclosure is the full repayment of the remaining loan amount in one single payment instead of paying it back in multiple EMIs. It is an existing part of your personal loan process in which you can repay the loan before your scheduled EMI period.

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What is the foreclosure charges of car loan?

Car Loan Fees & Charges

Description of charges New Car Loans
Foreclosure charges* No foreclosure allowed within 6 months from date of availing the car loan
6% of Principal Outstanding for preclosures within 1 year from 7th EMI
5% of Principal Outstanding for preclosures within 13-24 months from 1st EMI

Is it good to repay car loan early?

When finances look up or if there is a sudden influx of money, it is wise to end the debt. In simple terms, prepayment or foreclosure means the satisfaction of debt before the end of tenure. People usually look to prepay the loan because it not only offers interest savings but also lets them avail other loans easily.