HDFC Personal Loan Pre-Closure

Because the bank will lose future interest income due to the loan being paid off, the charge will be higher in the first few months of repayment of outstanding loan and will decrease as additional instalments of loan repayment are made. 

If you want to proceed with your closure request, you will also have to submit a formal request in writing to your bank or other lender. Once they have your request, they will respond to you with the total amount due for payment at time of closure and will disburse your loan at that time. 

What is partial payment of personal loan? 

Partial payment of an outstanding loan means that you are prepaying part of the outstanding amount prior to when it is due but are not closing the loan entirely. Charges associated with partial payments are only assessed on the amount pre-paid; they are not applied to total outstanding balance.  

Partial payments provide you with an opportunity to either reduce the amount of your monthly payments (EMIs) or shorten your repayment term (length of time you have to repay the loan). Additionally, there are restrictions relating to partial payments such as 

• after one complete EMI has been paid 

• maximum limit for prepayment 

• maximum number of times prepayments can be made during outstanding term of loan. 

HDFC Personal Loan Pre-Closure or Pre-Payment Fees and Charges

Steps for the HDFC Personal Loan Pre-Closure or Pre-Payment Process

Follow the instructions below:   

• Step 1: Gather all required documents and go to a physical location (your bank's branch) to initiate the loan closure process. 

• Step 2: Request the closure of your loan with a formal written application or possibly fill out a designated form provided by the bank that outlines your request. 

• Step 3: You will have to pay off your total balance before considering which of the two types of loans you have to pay off with your existing funds. 

• Step 4: If your loan has a defined payment schedule, we recommend signing the loan closure documents at the time of payment to avoid having to resubmit any completed paperwork later. 

• Step 5: When you pay off your loan, ask for and receive a receipt acknowledging payment. 

• Step 6: Personal loans are not secured by any particular property or asset (therefore, no pledged asset or collateral will need to be released), so you will not need to contact any third parties regarding this. 

• Step 7: The loan account will officially close once the bank confirms receipt of funds. 

• Step 8: If you receive a statement from your bank confirming payment, keep this for your records. You will need to use it as proof of payment if required at any time in the future. 

Considerations to Close Your HDFC Personal Loan 

 There are many financial benefits to closing your personal loan, including: 

• No remaining debt: You are responsible for paying back the loan until it has been fully paid off. 

• Lower monthly payments: Closing a loan reduces your total monthly payment obligations, making it easier to keep track of your finances or start new investments. 

• Better chances of getting new loans: If you don't have current debts, lenders will be more likely to give you new loans. 

• Higher credit score: By successfully closing a loan, your credit history will see positive effects and your overall credit rating will increase. 

Personal Loan Closure Checklist 

Use this checklist to ensure a smooth and hassle-free loan closure process: 

• Review your loan agreement 

Carefully check the terms and conditions, especially pre-closure charges, eligibility, and any restrictions. This helps you avoid unexpected fees. 

• Contact customer support 

Speak with your lender’s customer service to understand the exact process, applicable charges, and final payable amount. 

• Choose your preferred method 

Decide whether to visit the branch or use NetBanking to initiate the closure request, depending on what is more convenient. 

• Keep documents ready 

Ensure you have all required documents, including your loan account details and valid identity proof. 

• Request final settlement amount 

Ask for a pre-closure quote that includes the outstanding principal and any applicable charges. 

• Complete the payment 

Pay the exact amount as advised by the bank to avoid delays or pending dues. 

• Collect final loan statement 

Once processed, obtain the final statement or closure confirmation (NOC) and keep it safely for future reference. 

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