The Home Loan Prepayment Process Includes:
1. Communication to the Lender: Since you are paying off the loan earlier than planned, inform the lender in writing beforehand.
2. Pay Penalty (if any): As per RBI mandate, lenders cannot charge penalty fees for prepayment on floating interest. But some lenders may charge a fee for foreclosing your Home Loan.
3. Foreclosure: You can prepay any amount (equal to the sum of minimum three EMIs) per transaction after your first EMI is cleared. There is no limit to the maximum amount you can pay towards your Home Loan Part Prepayment
Home Loan Prepayment Tips
• Plan for prepayment early in the loan tenure.
• Evaluate benefits of using the funds other than for foreclosure.
• Get an acknowledgment letter from the lender.
• Retrieve all original documents on foreclosure.
• Before deciding, check the tax benefits.
Home Loan Prepayment Rules
• Carry a government proof of identity when you plan to prepay.
• Submit relevant to documents to support prepayment.
• Collect the unused cheques from the lender to avoid misuse.
Bajaj Finserv does not charge any extra fees for foreclosure of your home loan. You can conveniently prepay through our Online Customer Portal – Experia.
Additional Read: Factors to Keep in Mind when Prepaying your Home Loan