Help Required for Early Loan Foreclosure From bank

[Card_Maddy]

Hey everyone,

I hope you're all doing well. I wanted to reach out about something that's been on my mind lately. One of my close friends recently found himself in a tough spot. He took out a Personal loan of 7.5 lakhs, and paid back 3.5 lakhs, but unfortunately, he lost job. Now, he is contemplating closing the loan by dipping into savings and arranging funds, as he do not want to avoid accruing more interest.

We've been discussing their options, and it seems like consulting the bank was the logical first step. However, they were shocked to find out that the bank is charging a hefty percentage to close the loan early. This has left them feeling quite overwhelmed, to say the least.

So, I'm turning to you all for advice. Has anyone been in a similar situation or knows of any strategies to negotiate a waiver of these charges? Any insights or suggestions would be greatly appreciated. My friend is hoping to find a solution that won't leave them drowning in additional fees. Thank you in advance for your help!

Edited
1) HDFC bank, Roi is 11.75% P.A, tenure 48 Months. Foreclosing charge they are asking is 4.2%.
+ it has been a year.

Best regards,
Card_Maddy.

 

[Gaara]

Please mention which bank and what % they are demanding for foreclosure.

 

[Deleted member 11974]

if it was a floating rate personal loan then they cant charge a foreclosure
and as for fixed rate loans a 3% foreclosure is industry common

 

[Card_Maddy]

Please mention which bank and what % they are demanding for foreclosure.

HDFC bank, Roi is 11.75% P.A, tenure 48 Months. Foreclosing charge they are asking is 4.2%.
+ it has been a year.

 

[Gaara]

HDFC bank, Roi is 11.75% P.A, tenure 48 Months. Foreclosing charge they are asking is 4.2%.
+ it has been a year.

Add this to Question.
will help people give appropriate answers.

 

[Deleted member 11974]

go through your loan agreement
it has all the details mentioned

 

[bsc0008]

I've previously closed my PL with them, they only waive the forceclosure charge only when taking a top-up on the existing loan.
It's given in their portal itself. We can't close without paying the charges.



https://www.hdfcbank.com/personal/borrow/popular-loans/personal-loan/interest-rates-and-charges

 

[MrJJ]

I've previously closed my PL with them, they only waive the forceclosure charge only when taking a top-up on the existing loan.
It's given in their portal itself. We can't close without paying the charges.

View attachment 45661

https://www.hdfcbank.com/personal/borrow/popular-loans/personal-loan/interest-rates-and-charges

So can we take a topup loan and foreclose the previous loan. After that close topup loan in the freelook period?

 

[bsc0008]

So can we take a topup loan and foreclose the previous loan. After that close topup loan in the freelook period?

I haven't tried like that. But can give it a try in future as an experiment 😛

 

[V360V360 is verified member.]

Hey everyone,

I hope you're all doing well. I wanted to reach out about something that's been on my mind lately. One of my close friends recently found himself in a tough spot. He took out a Personal loan of 7.5 lakhs, and paid back 3.5 lakhs, but unfortunately, he lost job. Now, he is contemplating closing the loan by dipping into savings and arranging funds, as he do not want to avoid accruing more interest.

We've been discussing their options, and it seems like consulting the bank was the logical first step. However, they were shocked to find out that the bank is charging a hefty percentage to close the loan early. This has left them feeling quite overwhelmed, to say the least.

So, I'm turning to you all for advice. Has anyone been in a similar situation or knows of any strategies to negotiate a waiver of these charges? Any insights or suggestions would be greatly appreciated. My friend is hoping to find a solution that won't leave them drowning in additional fees. Thank you in advance for your help!

Edited
1) HDFC bank, Roi is 11.75% P.A, tenure 48 Months. Foreclosing charge they are asking is 4.2%.
+ it has been a year.

Best regards,
Card_Maddy.

If the loan is above 10Lacs, then foreclosure charges is 0 for HDFC.

 

[Card_Maddy]

If the loan is above 10Lacs, then foreclosure charges is 0 for HDFC

Has to pay foreclosure charges which are like his 2-3 emis.