Do you want to know about
Pre closure charges for home loan HDFC and SBI? I should inform you that before
deciding to pre-close your home loan, you need to carefully evaluate the pre-closure charges and compare them with the potential savings from early repayment.
Is There Any Pre Closure Charges for Home Loan?Yes, both HDFC and SBI charge pre-closure fees for home loans. These charges are applicable when you decide to close your home loan before the completion of its original tenure. The pre-closure charges are levied to compensate the lender for the loss of interest income they would have earned if the loan had continued for its full term.
Pre Closure Charges for Home Loan HDFC
For floating rate home loans, HDFC charges a pre-closure fee of 2% of the outstanding principal amount if the loan is closed within the first three years of its tenure. After three years, the pre-closure fee is reduced to 1% of the outstanding principal amount.
SBI Home Loan Pre Closure Charges
For floating-rate home loans, SBI charges a pre-closure fee of 2% of the outstanding principal amount if the loan is closed within the first five years of its tenure. After five years, the pre-closure fee is reduced to 1% of the outstanding principal amount.
Additional Considerations:
Tax Implications: The pre-closure charges may have tax implications. Consult a tax advisor to understand the tax implications in your specific case.
Partial Pre-Closure: If you are planning to partially pre-pay your home loan, the pre-closure charges will be applicable only on the amount you are pre-paying.
I hope this information helps you know the
Pre closure charges for home loan HDFC and SBI.
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Is there any pre closure charges for home loan?
The lender usually charges a pre-closure fee for a home loan. I will provide a chart below so that you can check out the pre-closure charges of different banks| Bank | Charges for Pre Closure | Charges for Prepayment |
| PNB Housing Finance Limited | Nil | Nil - Individual Borrowers 2% of prepaid principal – Non-individual borrowers |
| HDFC LTD. | Nil | Nil |
| Indiabulls | Nil | Nil |
| Sundaram Home Finance Limited | Nil | Nil |
| Axis Bank | Nil | Nil |
| DBS Bank | Nil | Nil |
| Aditya Birla Housing Finance Limited | Nil - Individual Borrowers 2% of outstanding principal – Non-individual borrowers | Nil |
| Gruh Finance Limited | Nil | Nil |
| Oriental Bank of Commerce | Nil | Nil |
| DHFL | Nil - Individual Borrowers 2% of outstanding principal – Non-individual borrowers | Nil - Individual Borrowers 3% of outstanding principal – Non-individual borrowers |
| LIC Housing Finance Limited | Nil to 2% of the loan amount that is prepaid | Nil to 2% of the loan amount that is prepaid |
| Federal Bank | Nil to 3% of the balance that is outstanding | Nil to 3% of the balance that is outstanding |
| State Bank of India | Nil | Nil |
| Andhra Bank | Nil | Nil |
| Dhanlaxmi Bank | Nil | According to the guidelines of the bank |
| Bank of Baroda | Nil | Nil |
| Bank of India | Nil | Nil |
| Bank of Maharashtra | Nil | Nil |
| Canara Bank | Nil | Nil |
| Dena Bank | Nil | Nil |
| IDBI Bank | Nil | Nil |
| Indian Overseas Bank | Nil | Nil |
| Karur Vysya Bank | Nil | Nil |
| South Indian Bank | Nil | Nil |
| Tamilnad Mercantile Bank | Nil | Nil |
| Central Bank of India | Nil | Nil |
| India Shelter Finance Corporation | Nil | Nil |
| AAVAS Financiers Limited | Nil | Nil |
| Reliance Home Finance Limited | 2% to 5% of the outstanding principal | 2% to 5% of the outstanding principal |
| TATA Capital | Nil – If paid using funds | Nil – If paid using funds |
| Kotak Mahindra Bank | Nil | Nil |
| Jammu & Kashmir Bank | Nil | Nil |
| Yes Bank | Nil - For floating rates 4% of outstanding principal –for fixed rates | Nil - For floating rates 4% of outstanding principal –for fixed rates |
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Authors Of The Question
Is there any pre closure charges for home loan?
Somnath
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2 Year
2022-01-25T19:21:07+00:00 2022-01-25T19:23:00+00:00Comment
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