What is HDFC Personal Loan Lock in Period?

When you take a personal loan from HDFC Bank, there is a lock‑in period involved. As far as I know, the HDFC Bank personal loan lock in period is 12 months. It means you cannot prepay or foreclose the loan (either fully or partially) within the first 12 EMIs post disbursement. 

What is the HDFC Personal Loan Lock In Period?

12 months. This one-year restriction is standard across personal loans and ensures borrowers commit to the terms before early repayment. Once you’ve paid 12 EMIs, you're allowed the following:

• You can make partial payments of up to 25% of the outstanding principal once per financial year, and no more than twice over the entire loan tenure. These are typically allowed from month 13 onwards.

• After completing 12 EMIs, you may opt for early closure of the loan. However, you'll incur a foreclosure charge, which varies depending on how long you’ve serviced the loan:

• If you close your loan between months 13 to 24, the charge is approximately 4% of outstanding principal.

• Between months 25 to 36, the charge drops to 3%. 

• Beyond 36 EMIs, the fee is around 2% of the outstanding principal.

This is all about the lock in period for HDFC personal loan.

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When you take a personal loan from HDFC Bank, there is a lock‑in period involved. As far as I know, the HDFC Bank personal loan lock in period is 12 months. It means you cannot prepay or foreclose the loan (either fully or partially) within the first 12 EMIs post disbursement. 

What is the HDFC Personal Loan Lock In Period?

12 months. This one-year restriction is standard across personal loans and ensures borrowers commit to the terms before early repayment. Once you’ve paid 12 EMIs, you're allowed the following:

• You can make partial payments of up to 25% of the outstanding principal once per financial year, and no more than twice over the entire loan tenure. These are typically allowed from month 13 onwards.

• After completing 12 EMIs, you may opt for early closure of the loan. However, you'll incur a foreclosure charge, which varies depending on how long you’ve serviced the loan:

• If you close your loan between months 13 to 24, the charge is approximately 4% of outstanding principal.

• Between months 25 to 36, the charge drops to 3%. 

• Beyond 36 EMIs, the fee is around 2% of the outstanding principal.

This is all about the lock in period for HDFC personal loan.

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HDFC Bank offers personal loans with flexible repayment options, but they usually include a lock-in period. The HDFC personal loan lock in period refers to the minimum time frame during which the borrower cannot make any prepayments or close the loan.

What is the Lock In Period for HDFC Personal Loan?

For HDFC personal loans, the typical lock-in period is 12 months. This means that during the first year of the loan tenure, borrowers are not allowed to prepay the loan partially or fully.

The purpose of the HDFC Bank personal loan lock in period is to ensure that the bank recovers a portion of the interest costs associated with the loan. Once the lock-in period is over, borrowers are permitted to make prepayments, either partially or in full, to reduce their outstanding loan amount.

However, such prepayments may attract prepayment charges. For HDFC personal loans, these charges can range from 2% to 4% of the outstanding principal amount, depending on the specific terms agreed upon at the time of loan approval.

It is important to note that prepayment or pre-closure of the loan after the lock-in period can be beneficial for borrowers. By reducing the principal amount earlier, they can save on the overall interest cost of the loan.

However, borrowers should carefully evaluate the prepayment charges and compare them with the potential interest savings to determine if it is financially advantageous.

To initiate the prepayment process, borrowers typically need to inform the bank and clear any outstanding dues, including prepayment charges. The bank will then issue a No Objection Certificate (NOC) and update the loan account status.

This is all about

HDFC personal loan lock in period

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