Prepayments are early payments made by the borrower towards the loan taken. Generally, prepayments are lump-sum amount paid by the borrower towards their loan account. Borrowers availing HDFC business loans can make prepayments at the bank discretion. The prepayments made are deducted from the balance outstanding principal amount of the loan impacting in reduction of loan amount.
However, below restrictions are imposed by the bank before making prepayments:
- Paying a minimum of 6 EMIs and
- A minimum period of 6 months from the loan date
However, there will be foreclosure charges applicable to the borrower.
HDFC bank has provided flexible option for making prepayments to loans taken for business purpose. The borrower can make prepayments from 12 months to 48 months of taking the loan.
Delay in Making Payments towards EMIs by the Borrower
In case the EMI cheque bounces or ECS system fails to credit the EMI, a charge of Rs.550/- as penalty will be levied by the bank. Also, in case of delay or default on the borrowers’ end to make payments towards EMIs, HDFC bank will charge a late payment fees on the outstanding loan amount at the rate of 24% from the default date.