Cancellation of partial disbursed loan against property within 30 days

Hi Rakesh, The Reserve Bank of India (RBI) has mandated that all NBFCs must allow borrowers to cancel their loans within 30 days of disbursement without any penalty. 

To cancel a partially disbursed NBFC loan, you will need to submit a written request to NBFC and it should be made within 30 days of the date of disbursement. However, you may need to read the loan agreement carefully before you submit such a request as it may have terms and conditions that would need to be adhered to.

If the terms of loan do not allow you to foreclose the loan within a stipulated period of obtaining the loan, then you may be at a great loss because the lender company may charge you exorbitantly in the name of penalty. and other charges.

Terms and conditions of advancement of loan and forclosure agreed by you shal govern the subject.

Prepayment is an option provided by financial institutions allowing customers to pay their loan prior to the expiry of the loan's due date.

Personal Loan Pre-payment charges of top financial lenders may be read in the following manner:,

Bank

Prepayment Charge

Prepayment Period

State Bank of India

• 3% on amount being prepaid for 3% for Xpress Credit, Xpress Power and Pension Loans
• No prepayment/ foreclosure charges to be charged if loan account is being closed with the funds obtained from a new loan under the same scheme

As per the bank's terms & conditions

HDFC Bank

• Closed between 13-24 months - 4% of principal due
• Closed between 25-36 months - 3% of principal due
• Closed after 36 months - 2% of principal due

• Prepayments not permitted, in part or in full, before 12 loan EMIs have been paid
• Part payment can be done for up to 25% of principal amount due, only during a financial year and twice in the loan term

Yes Bank

• Closed between 13 to 24 months - 4% of principal due (20% principal due can be paid)
• Closed between 25 to 36 months - 3% of principal due (20% principal due can be paid)
• Closed between 37 to 48 months - 2% of principal due (25% or principal due can be prepaid)
• If prepaid after 48 months - no foreclosure charges (25% or principal due can be prepaid)

Loan can be foreclosed only after payment of 12 loan EMIs

Citibank

• At the discretion of the bank.

• Contact the bank for more information.

Kotak Mahindra Bank

Rs.500 plus applicable GST on due principal amount per instance

Prepayment can only be done after 12 months starting from the date of the first EMI payment

Axis Bank

2% -5% of the outstanding loan amount

Up to 5% of the principal outstanding

HSBC

Up to 3.75% of the principal outstanding

Pre-payment or foreclosure on a personal loan can be done only after the mandatory lock-in period, mentioned in the loan terms, is over

IndusInd Bank

• Loans to salaried individuals - 4% of the principal due
• Loans to self-employed individuals - 4% of the principal due

• Salaried borrowers can foreclose or prepay the loan after paying 12 EMIs
• Self-employed borrowers can foreclose/pre-pay the loan after making 6 EMI payments

IDBI Bank

• If the loan is being foreclosed or prepaid in full or part within 6 months from the loan disbursal date, a fees of 2% of the loan amount due will be charged.
• Those foreclosing/prepaying their loans must note that they will not be sanctioned any loan before a period of 12 months starting from the date on which they have prepaid/foreclosed their last loan.

Borrowers may be allowed to foreclose or prepay their loan 6 months after the date it has been disbursed, without any prepayment penalty.

South Indian Bank

• If the loan is being prepaid in part or in full within 1 year of disbursement - 4%
• If the loan is being prepaid in part or in full after 1 year of disbursement - 2%

Loan cannot be prepaid before the end of 1 year starting from loan disbursal date

Punjab National Bank

No charges will be levied on loan prepayment

As per terms and conditions of the lender

Central Bank

Prepayment charges levied will depend on the type of personal loan being borrowed

As per terms and conditions of the lender

Dhanlaxmi Bank

The prepayment charges applicable on the Dhanlaxmi Bank personal loan are 2% plus service tax on the principal amount due

The loan can be prepaid before or after 12 monthly instalments of the loan have been paid

Jammu & Kashmir Bank

There are no prepayment charges levied on prepayment of the loan

As per terms & conditions of the lender

Tata Capital

A charge of 2.5% + GST will be levied on any prepayment amount that is over 25% of the principal due.

• Part prepayment on the loan is not permitted before 6 months starting from the date of loan disbursal
• Part prepayment can only be done once in a year.
• There has to be a gap of at least 6 months between two-part prepayments
• Part payment can be done for up to 25% of the outstanding loan principle

IIFL

• Foreclosure - A charge of up to 7% will be charged
• Prepayment - the loans can be prepaid without attracting any penalty or charge

Prepayment of the loan can be done only after loan EMIs have been paid for the first 6 months after loan disbursal

Fullerton India

• Loan closed between 7 to 17 months from agreement date - 7.00% (for salaried/self-employed borrowers)
• Loan closed between 18 to 23 months from agreement date - 5.00% (for salaried/self-employed borrowers)
• Loan closed between 24 to 35 months from agreement date - 3.00% (for salaried/self-employed borrowers)
• Loan closed after 36 months from agreement date - No charge to be levied for salaried/self-employed borrowers

• The loan can be foreclosed only after 6 months from the loan disbursal date.
• The loan amount can be repaid at any time during the loan tenure