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What is Prepayment of Home Loan?
When it comes to prepayment of home loans, this is nothing but paying off the loan with your surplus or added finances. Housing loan prepayment is when the borrower partially or fully pays off the home loan prior to the completion of the home loan tenure. There are a few home loan prepayment rules that you should always keep in mind in this regard.
Prepayment Charges on Home Loan
When it comes to prepayment, you can always use a home loan prepayment calculator to work out the specifics. The prepayment charges on home loans vary from one lender to another. It usually ranges between 2-4% depending on the lender in question. While prepaying the loan, you should always take an acknowledgement of the same which mentions details like the amount prepaid, the outstanding loan amount, remaining tenure and new monthly EMI. The prepayment process requires you to get in touch with your lender online/offline. You can also opt for foreclosure, i.e. prepaying any amount which is at least the same as the sum of three EMIs once the first EMI has been cleared. Make sure that prepayment is planned early on and in case of foreclosure of the entire loan, get your home loan original documents retrieved at the earliest. Have your ID proof when you wish to prepay the loan and submit all documents required. Collect unused cheques from the lender as well.
At Bajaj Finserv, there are no extra fees charged in case of home loan foreclosure. You can easily prepay the loan through the Experia online customer portal.
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