Go Back   Team-BHP > BHP India > Team-BHP Reviews > Indian Car Loans & Insurance


Reply
 
Thread Tools Search this Thread
Old 22nd December 2014, 22:44   #16
BHPian
 
nirmalts's Avatar
 
Join Date: May 2007
Location: Stuttgart, Germ
Posts: 252
Thanked: 6 Times
Default Re: Good news: Pre-pay car & home loans without penalty

Thanks for the info. I haven't talked to my bank yet. My (home) loan is 7 years old. I hope I don't get any surprises.
nirmalts is offline   Reply With Quote
Old 24th December 2014, 16:35   #17
BHPian
 
nirmalts's Avatar
 
Join Date: May 2007
Location: Stuttgart, Germ
Posts: 252
Thanked: 6 Times
Default Re: Good news: Pre-pay car & home loans without penalty

I got some additional info from someone who retired from RBI

Quote:
It is true that banks have been directed not to levy any pre closure charges in case of housing loans, however,
1. banks may check whether the funds used to extinguish existing loan is from the borrowers own source. In other words if banks suspect that the funds used to extinguish the loan has come from another bank loan, the bank may create problems by levying some charges. (Transferring loan to another bank for interest arbitrage, etc).
2. The loan availed should not be on fixed interest rates. (In most cases the loan would have been taken on floating rates).
My loan is floating. My bank confirmed that there are no pre-closure charges, expect for some document retrieval charges of approx 2k.
nirmalts is offline   Reply With Quote
Old 24th December 2014, 17:12   #18
Distinguished - BHPian
 
saket77's Avatar
 
Join Date: Dec 2012
Location: Ranchi
Posts: 3,186
Thanked: 4,190 Times
Default Re: Good news: Pre-pay car & home loans without penalty

I pre-closed my home loan about 2 years ago with about 7 more years to go for the full tenure. I did not pay any pre-closure charges. Hope this helps.

Regards.

Last edited by saket77 : 24th December 2014 at 17:13.
saket77 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Registration of a new car without any broker(without paying bribe) in Noida hdi_pro Indian Car Loans & Insurance 56 23rd March 2017 20:40
Is it advisable to pre- pay a home loan sanman18 Shifting gears 59 8th August 2014 18:44
Info on home loans satish_appasani Shifting gears 10 20th May 2011 13:14
Reliance Finance: is it a good option for Car Loans sri737 Indian Car Loans & Insurance 23 11th February 2010 17:28
Home, car loans to rise further; RBI hikes key lending rate navdeep Indian Car Loans & Insurance 4 4th April 2007 04:59


All times are GMT +5.5. The time now is 12:18.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks