HDFC Bank provides home loans with adjustable repayment schedules. Prepayment is one such choice, allowing debtors to settle their entire debt ahead of their agreed-upon payback period. However, there are certain HDFC home loan prepayment rules that I found online.
What are HDFC Bank Home Loan Prepayment Rules?
Before paying off the HDFC house loan early, borrowers must abide by several regulations. Some of the rules are as follows:
Make sure you have enough funds set aside for your financial objectives, such as getting married, medical emergencies and so on.
It is preferable to invest any excess money rather than use it to pay off your house loan early if there is a chance you may make higher returns.
You might not fully benefit from interest savings if you pay off loans in the middle to late stages.
Prioritising the prepayment of high-interest loans is a better way to reduce debt.
If the prepayment is made within the first 12 months of taking out the loan, HDFC applies a prepayment penalty of 2% on the remaining loan balance.
Debtors are free to make prepayments following the 12 months.
Additionally, you are eligible for tax exemptions on the interest you pay on housing loans. The entire interest amount is exempt in the case of rental property. However, the exemption is limited to Rs. 2 lakh in the case of self-occupied property.
I hope you found this answer helpful.
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What are the HDFC Home Loan Prepayment Rules?
Dignesh
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11 months
2024-07-02T11:07:49+00:00 2024-08-06T15:09:58+00:00Comment
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