Home loan prepayment online using NEFT payment

POSTED BY Jagoinvestor ON February 6, 2012 COMMENTS (442)

Replying to comments teaches me many things, so I want to share one useful learning today. One of the NRI reader called Rahul was facing a strange problem, He had taken a home loan from ICICI bank few year back and now he wanted to pre-pay his home loan. However the problem was that he was outside India and bank wanted him to visit in person to pre-pay the home loan. The other way was to go through a Power of Attorney route which is extremely lengthy process. So Rahul was really stuck, however Manu appeared and shared that he has been pre-paying his home loan by adding his LOAN account as third-party account and then doing a normal NEFT transfer.

Prepaying home loan online

One big reason why you should connect your loan account for prepaying your home loan or other kind of loans is because at times we get some spare cash in our life through bonus or some other reason but because prepayment needs some effort and physically going to bank takes away our excitement and all that money finds its way to some other expenses which could have been avoided. I was aware of this trick earlier but really wanted some more confirmations from other readers before writing it and now I have got 3 confirmations from different readers that a LOAN account can be added as third-party account in your online banking account and you can do a NEFT transfer to your loan account. This is a simple and powerful way of pre-paying your home loan or any other kind of loan because it’s at your finger tips and you don’t have to delay the decision of prepaying your loan just because of inconvenience caused by visiting the bank.

Let me share with you some instances where readers have confirmed about this trick –

Proof by Manu on Home Loan Prepayment through NEFT

I have done the similar way for SBI. In the last few months I have paid off a substantial chunk online without visiting the bank – in fact they themselves suggested this option. What Manish said should be possible with ICICI bank. It’s like setting up an account to which you transfer funds – lets say you send some money to your parents every month. You would have added their account in third-party transfer section. Same applies to loan account. Hope this helps.

Proof by Lakshman on prepayment by NEFT

I have a Home loan from state bank of travancore. I have online access to the loan account and part-paying is simply initiating a neft transfer from any of my saving accounts to this loan account. It has been very convenient so far.. Since its online, i can see the outstanding principal amount i have on any given day.

Proof by Pradeep on home loan prepayment by online transfer

Apart from PPF and other instruments, you can make part payment of your home loan or loan EMIs through NEFT also. Well I am doing NEFT transfer to my OBC Home loan a/c every month. Initailly it was paid through post-dated cheque.

Steps of adding your Loan Account to your online Banking account

1. Make sure you have internet banking enabled and the branch where you hold the loan account also accepts the online payments (mostly this is always true)

2. Just like you add a third-party account , in the same manner add your loan account as third-party account so that you can make the NEFT payment later. Once the account gets added , you should be able to see it as one of the added accounts

Home loan payment online using NEFT

3. Once the account gets added, you can then make the payments to your loan account , it would be considered as your pre-payment .

Also read Online transfer to PPF account through NEFT payment

Some points on home loan prepayment

  • Note that this home loan prepayment online through NEFT should be possible for all kind of loans, not just home loan.
  • Why only pre-payment, you can also pay your regular EMI’s using online options instead of post dated cheques. So ask your bank to allow/enable this option.
  • It might happen that this does not work in some banks. But we have seen 3 confirmations from different readers for 3 different banks , so mostly this should work on all the banks.
  • If you have bank account and loan account in same bank , it should be more easy process of just linking the accounts, ask your bank on this to guide you.

So If you have a home loan, you should definately explore the idea of connecting your loan account with your bank account so that whenever you have some spare amount , you can quickly do home loan prepayment the loan by a click of the button , otherwise that “extra” cash can evaporate very soon. Are you going to do this ? Try it out and let us know in comments section if home loan prepayment worked for you through NEFT

442 replies on this article “Home loan prepayment online using NEFT payment”

  1. Shailesh Mishra says:

    I have SBI Maxgain Account and i transfer amount in that. Will that be considered as pre payment ?

  2. Sonali says:

    I want to prepay LIC HFL loan from citibank account. they have options for transferrring funds like ‘to the Citibank a/c”, ”to other bank a/c” , ”IMPS” and ”Request demand draft” – > If i select ”Request demand draft further options is ”register new beneficiary” -> Third party beneficiary-> and then asks name etc.
    I am not sure this is the ”third party” entry you are suggesting in this article? please suggest.

    1. I am not very sure on this .

  3. Ragu says:


    Currently i am paying 9.7% and for new loans only bank is offering at 9.4%. Can a bank give different interest to customers for home loan? I gave a letter to the bank. But no response. my loan’s remaining principle and tenure is 27L and 18years. can i switch to some other bank.

    Please suggest.


  4. Bala says:

    HI I am aslo facing the same issue.. .When i am adding HDFC Loan Account… It is asking IFSC Code… Can you please help me how to add this ….

    1. Bala says:

      I am an Existing Customer for HDFC Bank limited and I took loan from HDFC LOAN. Now when i try to add HDFC Loan details with existing HDFCBank Netbanking details it is asking IFSC code for HDFC Loan Account…

      1. I dont think its possible because it has to be a BANK inorder to add the IFSC code ! .

        1. Subhakanth says:

          I am also facing little bit strange situation. I am based out of UK.
          I did pre-payment on my HDFC NRI home loan. I sent a cheque to HDFC London office and they received it on 6th May. They took 2 days for processing and sent the cheque to Delhi which took another 3 days. So, the date of payment they have taken is only when they received the cheque in India i.e., on 13th May (excluding weekend). So, I was charged simple interest on prepayment amount from 1st May to 13th. I expect them to charge only from 1st to 6th May.
          They say that this is the Indian Rupee loan and so the processing is happening in India so that date of payment is the date when they receive the cheque in India.
          For me, it is outrageous. I don’t have option to pay via my GPA as he doesn’t have my cheques. Since it is NRI loan, they are not accepting a cheque from my GPA Indian account as they want a cheque from NRE/NRO account. They don’t have online facility for prepayment(there is no doubt that they intentionally are not providing this facility).

          So, I am at the mercy of HDFC internal process.

          So, I wanted to know whether the way HDFC is following is a right/legal way or not.


          1. I am afraid that this is how it works I guess. You can complain to HDFC greviance cell and later to banking ombudsman on this if you are not satisfied


  5. Nishant says:

    I tried adding LIC HFL as a third party. It asks for ISFC code, which LICHFL does’nt have as it’s not a bank.
    Any other way, by which part payment can be made to LICHFL ?

    1. Yes, thats why you cant do the online prepayment with them. It can only be done with banks !

  6. Prathmesh says:

    I have a loan from ICICI HFC from last 7 months. Now i want to transfer it to SBI. Can any1 tell is tere any lock in period for balance transfer in ICICI HFC.

  7. sheik says:

    It works for me. 🙂 I too called to the customer care for couple of times. But they said that there is no option to pay the home loan through online. Luckily I got a chance to check this site. I made a sample payment of Rs.5000, It was credited to my Principal amount. I am so happy. Now I can pay lump sum amount. Is there any restriction to dd this kind of online payment? Like
    1. no of payment per year…
    2. Amount of payments per year..

    My outstanding loan amount is 36L. Want to pay 13 L now.

    Please advise.

    1. There is no limit as such !

      1. Sheik says:

        Thank you so much for your reply! 🙂

  8. Gopinath says:

    I have loan in LIC HFL, can any one inform how I can transfer loan amount through online banking (I have axis bank account)

    1. This article is valid only for the banks , not housing finance companies

  9. Gaps says:

    Nice Blog Manish. But thought I would add to the context since you started with the problem statement of Rahul who apparently had Home loan through ICICI bank. Part prepayment can be done through NEFT but it truly depends on Bank to Bank. As far as ICICI is concenrned, even for doing a part payment through NEFT, one has to visit the branch first in order to get a Service request number. So, with ICICI it nullifies the benefit of doing it solely online through NEFT (weird but that’s how it is).
    Although, it is nice to have the option to pay partly though NEFT which indeed so many banks are up to. Unfortunately not for borrowers from ICICI.

    1. Thanks for sharing that .. I agree that it finally depends from banks to banks !

    2. Nazeer says:

      Hi Gaps,

      ICICI is having phoneBanking option. (No need to visit the Branch). Please Check.

  10. Rashmi says:

    Does anyone know if there is a limit on the number of prepayments made for SBI Maxgain Home Loan ? When i availed Maxgain home loan, i was told that there is no restrictions on the number of prepayments. However now SBI states that I can do only 5 prepayments and each prepayment needs to be 20% of outstanding loan.

    I have a couple of friends who have availed SBI Maxgain loan, for one friend they have told that they can make 10 prepayments. For few other friends there was no restrictions imposed.

  11. Mehul says:

    I got sanctione of sbi flexipay home loan of 2.6 Cr. Market value is 4.7 Cr and carpet area is 1330 sq ft in mumbai. How much minimum one time home insurance premium I have to pay ? Home insurance is mandatory in sbi.
    Also can I do prepayment online rtgs to my sbi flexipay home loan ac

    1. Hi Mehul

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  12. Vincent says:

    when i am adding my loan account (form LIC) to HDFC bank portal its asking for the IFSC code for the loan account.
    i am not able to find any IFSC code for LIC. can you just suggest me

    1. Is it HDFC ltd ?

      1. Ayush says:

        yes, HDFC ltd

  13. niranjan says:

    i have taken a Loan from LIC against one of my insurance policy, now can i add that Loan Account number to my bank’s online banking system for NEFT to make my loan prepayment

    1. There is no surity on that. You can try though!

  14. Bhavesh vora says:

    I have taken star home loan from Bank of India. I have paid part amount 3 lakhs in home loan account by NEFT transfer from SBI online account. Amount paid is not adjusted against my home loan and Boi started to deduct EMI from that amount and stopped deducting regular EMI from saving Bank account. I want to know is there any loss to me due to this? What should I do?

    1. I think you should check with bank on this and ask them to adjust it with your principle !

    2. Devi says:

      Dear Bhavesh ,

      Did you check with BOI reg this?
      I am also planning to do part payment to my BOI star home loan.
      I think I need to check with bank before doing the transfer.

  15. manoj says:

    I have a loan a/c with IDBI bank and a saving a/c with the same, i want to add this loan a/c online for prepayment , but i start to add this a/c as a third party banificiary system says the a/c is not valid . so how i may add my loan a/c for online prepayment

    1. Hi manoj

      I am not clear on what is your question. Please repeat it with more clarity


  16. Kunal says:

    Hello Manish, I have taken sbi max gain home loan 3yrs back and now i am NRI since 2yrs.Now i have some eztra cash in my NRE account,i am wondering should i transfer my extra cash from NRE account to my OD loan account? Will i hv to pay tax for the money parked in OD account.Is it wise decision to park extra tax free money from NRE account to OD account?

    1. I suggest keep it in NRE account itself

  17. Sachin says:

    What about IMPS transfer to loan account ? I wanted to IMPS to my SBI loan account from my Icici. Is it possible ?

    1. I have no idea on that !

    2. Raman says:

      IMPS is instant transfer through mobile and works exactly like NEFT but money is transferred to target account immediately after being deducted from yours.. the only drawback is limit of transfer is less in IMPS than in NEFT…earlier it was only 50K a day now has been increased to 2 lakh per day..

  18. Rajat says:

    Does anyone know the difference between “drawing power” and “outstanding amount”. I see these two terms in my SBI loan account online.
    The drawing power amount is some 40k more than outstanding amount.
    What is the total amount that i need to repay, is it Drawing power or outstanding amount.


  19. Rajat says:

    yes, banks do give the option of paying towards your principal through NEFT. just add the loan account as beneficiary in any of your bank accounts and make the payment.
    This principal amount will show up in your interest certificate (that you can generate online or get from the branch) that you can claim for rebate under 80C.


  20. Mahesh says:

    Sir i have housing loan account with SBH, i want to make some prepayments every month from my SBI savings account through internet banking, can i transfer using third party payments in SBI online banking? Will those payments be reduced from principal?

    1. IDeally yes, but please check once with the bank

    2. Rajat says:

      Yes Mahesh, the payments you make apart from your regular EMI is considered part of your principal payment.
      So, yes that amount will be reduced from the principal.

  21. Suchint says:

    Hi Manish ,
    Here i need to update on your article,
    I have SBI home loan (maxi Gain ) ,so even in case if you pay to your Homeloan account as NEFT it will park your money in MaxiGain Account(loan account) ,because MaxiGain Loan account is OverDraft account ,hence it will deposit in your account but not prepart payment .You can see your principal amount will be reduces by your payment but you can not claim this amount in 80C of income tax as this amount will be treated as Parked amount but not prepart payment.

    Hope this will helpful with other maxigain holders

    1. Thanks for adding that information 🙂

  22. Debabrata Banerjee says:

    My son has got a home loan a/c with LICHFL. Repayment is being done in each month through Bank where his a/c exists. My son is now in abroad and transferring some money to his own Bank a/c . Question is if he sends money
    to parents a/c, can we repay loan on line and that too with higher amount over the present quantum. Please give
    a suggestion to proceed further assuming that his physical presence is not possible .

    Father of loanee.

    1. Hi Debabrata Banerjee

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


      1. Nazeer says:

        Hi Manish,

        Recently I paid Home loan in LICHFL. Currently i am out of country. but i send a signed checks of my ICICI account ( where LIC HFL home loan is deducting) to my DAD. Every Month My DAD gave checks to the LICHFL at any branch in india. now the loan is about to close. I also called to the LICHFL to hold the documents with them, until i come back to india. They also Agreed for that one.

        For any queries – Better to visit first LICHFL office.

        I think this Feedback is helpful for you
        Best Regards

  23. Ashish says:

    is there is Minimum amount I can Pay as Pre Payment for Homeloan? will Bank accept if I just Pay 100 rs Today?

    PS: My homeloan is with ICICI

    do I need to give in writing to bank on how to process my pre payment?

    1. MOst of the banks put a limit of 3X of your EMI as the minimum prepayment. Check with your bank

    2. Kavya says:

      Only SBI accepts this kind of payments. ICICI has some conditions for prepayment.

    3. Nazeer says:

      Minimum Amount is not less than 1 month of EMI and Maximum amount is 6 months of EMI fir ICICI Home loans.

    4. Nazeer says:

      Minimum Amount is not less than 1 month of EMI and Maximum amount is 6 months of EMI for ICICI Home loans.

      1. Nazeer says:

        Minimum Amount is not less than 1 month of EMI and Maximum amount is 6 months of EMI for ICICI Home loans. 
        The above rule is per month basis

  24. Hemant says:

    Hi, I have my loan account from SBBJ. now, I am having a Saving account to with same bank.
    The online option shows both the accounts linked.

    So ,
    (i) Rather than NEFT, can I transfer the amount directly as inter bank transfer!!
    (ii) Will this prepayment result in reduction of tenure or EMI? How can I ensure that it is only of TENURE not the EMI?


    1. Hi Hemant

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


    2. DeepaRajesh says:

      I have a loan a/c with SBI and I did a part payment of about 4L when I got a chunk of money available.The online a/c reflected both and like any inter bank transfer put from SB savings to Loan a/c and the amount you wish to transfer.It will immediately reflect in your loan ac/ as a credit payment.
      The outstanding balance will be lowered by that amount.

      2.The EMI monthly payment will not be change but the overall tenure will be reduced.As such you will be paying less of the interest and more of principal and tenure automatically gets reduced.

  25. hemant says:

    i have to prepay my idbi homeloan. the bank says i need to make a prepayment of a minimum Rs 25000/- and only once a month. Please can someone confirm if this is correct.

    1. Hi hemant

      I am not clear on what is your question. Please repeat it with more clarity


  26. Rashmi says:

    Dear Manish,

    I have SBI MaxGain Home Loan. The maxgain home acccount shows up as OD account in my SBI Online Account. Any surplus amount can be parked in the maxgain OD account, this will only affect the book balance on which interest component is getting accrued.

    My Question: Is there a separate loan account which is linked to SBI MaxGain OD account? Sorry I asked SBI a number of times but the staff are not revealing anything about it. My SBI Online Account does not list the linked loan account. If it is listed then I can do NEFT transfers to reduce principal in small amounts.

    Kindly help ! I see that many members are able to do NEFT transfer to loan account while I’m in a position in which I don’t know if there is a linked loan account !


    1. Sunil says:

      I have SBI Maxgain Home Loan and I am regularly transferring money from my ICICI bank savings account thru NEFT. Remember your Maxgain account is nothing but a current account with overdraft facility. And the maxgain account number is your Loan account number. In ICICI bank, you need to add a payee with details – “Account Type = Loan Account ” , “Payee Account Number = your max gain account number for ex. 00000033128xxxxxx” , “Bank IFSC Code = your servicing branch ifsc code for ex. SBIN00xxxxx”.

      1. Rashmi says:

        Sunil thanks for your reply. Directly transferring money to MaxGain OD account via NEFT will not reduce the principal amount. It will only reduce the book balance. Folks on this blog article are talking about transferring money via NEFT directly to the Loan Account, and the fact that it reduces the principal. If this works then you need not visit the branch to make pre-payments.

        So again,

        My Question: Is there a separate LOAN ACCOUNT which is linked to SBI MaxGain OD Account? Sorry I asked SBI a number of times but the staff are not revealing anything about it. My SBI Online Account does not list the Linked Loan Account. Yes it does list the MaxGain OD Account and I am able to do NEFT transfers to it. The only problem is, if I want certain prepayments to be done, I will have to visit the branch, and this takes time. If the actual Loan Account is listed then I can do NEFT transfers to reduce principal directly, with out having to visit the branch.


        1. Kunal says:

          Hi Rashmi

          I have the same question.
          Can you please let me know if you have got answers for the same?


    2. Sunil says:

      Rashmi, I fail to understand why people with Maxgain , insist on repayment in “conventional” way. To me, it is like insisting on someone sending “SMS” when both of us have Whatsapp with message recall facility if you accidentally send a message with wrong details. Now, what is Principal ? The amount on which interest is calculated. For Maxgain your bookbalance goes down so does your interest. Plus in emergency, you can withdraw this prepaid amount ( like recalling your whatsapp message). IMHO, there is absolutely no practical advantage of ‘conventional’ prepayment for Maxgain. In fact, it defies the purpose of going for Maxgain against conventional Home loans. So honestly, I never bothered to find out if at all I can do it.

      1. Rashmi says:

        Thanks for your response Sunil.

        From what I understand, liquidity of funds is definitely a benefit with MaxGain. And from the math I did, pre-payment vs parking surplus, I have concluded that there is huge savings in the actual pre-payment of the principal vs parking funds as surplus. This might be true for my situation as it depends on my cash inflow vs outflow.

        I would highly advise you to do the math, based on your situation, and see which works better. Use the prepayment calculator on bank bazzar, and use maxgain calculator, available on some blogs, you will then have a clear picture.

        I want to reduce the principal rapidly till it falls into a range where the EMI does not bother me anymore. Then park funds in maxgain :).

        So back to my original question, “Is there a separate LOAN ACCOUNT which is linked to SBI MaxGain OD Account” ?


        1. suchint says:

          All Payment to MaxiGain Account will treated as Parked Money but not prepart payment
          Although Payment towards maxiGain Account will reduce your principal amount and interest component but it will not treated as prepart payment

          for example . if you take loan 20 lakhs for 20 years from SBI under maxigain scheme and You pay 20 lakhs in homelon account then this 20 lakhs will be parked in your maxigain account ,hence you EMI will be 0 but bank will generate debit and credit notice i.e. it will nullify ,but your loan account will continue for 20 years ,

          now you can not claim this parked amount in your 80C of income tax becoz it is not prepart payment

          for prepart payment you need to contact SBI homeloan Branch and submit cheque

          1. Thanks for sharing that suchint

    3. Kavya says:

      You are right. Keeping amount in Max gain will not be considered as part payment as that amount you can withdraw at anytime. So if the amount is taken by bank and not available to you then it becomes payment.
      So in order to get best out of the Max gain, I would suggest that you put surplus money you want to ‘prepay’ in your max gain account. Now, since money is in OD account the interest will not be charged on that amount.
      Now, coming to branch visits in order to make it ‘prepayment’, you can visit branch once in a six month or a year and ask SBI to square your surplus amount in Max gain account. i.e. instead of giving them cheque, ask them to debit amount from max gain account for prepayment.

      By this way, you can get benefit of prepayment as well as reduced branch visits.

    4. Kavya says:

      You are right. Keeping amount in Max gain will not be considered as part payment as that amount you can withdraw at anytime. So if the amount is taken by bank and not available to you then it becomes payment.
      So in order to get best out of the Max gain, I would suggest that you put surplus money you want to ‘prepay’ in your max gain account. Now, since money is in OD account the interest will not be charged on that amount.
      Now, coming to branch visits in order to make it ‘prepayment’, you can visit branch once in a six month or a year and ask SBI to square off your surplus amount in Max gain account. i.e. instead of giving them cheque, ask them to debit amount from max gain account for prepayment.

      By this way, you can get benefit of prepayment as well as reduced branch visits.

      1. Rashmi says:

        Thanks for all the details.

        Does anyone know if there is a limit on the number of prepayments made ? When i availed maxgain loan, i was told that there is no restrictions on the number of prepayments. However now SBI states that I can do only 5 prepayments and each prepayment needs to be 20% of outstanding loan.

        Can anyone clarify this point ?

        1. Hi Rashmi

          This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  27. Kavya says:

    Hi All,

    This is my experience with SBI.

    There are two situation occurs when you pre-pay some amount towards EMI.
    1) Bank will not deduct EMI or will deduct lower EMI considering your pre-payment as a part EMI (Default option)
    2) Bank will deduct EMI irrespective of the amount you paid as a art payment. (You have to instruct bank to do this)

    If you are doing some extra payment other than EMI then SBI by default won’t deduct the EMI. This has happened to one of my friend where he paid 50% of the loan amount as a pre payment and now bank is not deducting any EMI from his account from last 4 years (But accumulating the interest in loan account). In my opinion this is a bad option. Because this option actually does not help you to shorten the duration.
    You have to explicitly ask SBI to deduct your EMI through ECS irrespective of your pre payment.

    This is what I am doing with my SBI HL. I am paying a little amount say 3000 to 5000 per month over and above the EMI and it is not in multiple of my EMI. I am transferring this amount through NEFT. It goes towards principal and I can check it online in my loan account.
    Now here we may have a doubt. Whether the amount I am paying extra every month goes to principal and actually helping me to reduce my tenure?
    The answer is YES. The amount which I am paying extra is getting reflected in the loan statement which bank is giving at the end of the fiscal year. There I can see my ‘extra’ amount paid in ‘Principal amount re-paid’. So it is confirmed 🙂

    PS: I have never informed SBI about my extra payment every month. I just informed them to deduct my EMI irrespective of my extra payment.

    Hope this may help someone to reduce his/her home loan duration.

    1. Thanks for sharing your experience with all of us. I am sure someone who has taken loan from SBI or planning to take it will surely get help !

    2. Bixapathi says:

      I’ve recently taken home loan from SBI. My EMI date is 10th of every month.
      I have a doubt..I want to transfer my EMI amount(and some more over and above it) on the 1st of the month itself. Will it be considered as pre payment or EMI? and what happens on EMI date? I did not set any ECS nor given PDCs to bank. (Manager asked me to transfer EMI on or before 10th of every month manually)

      P.S. : Yesterday I added loan a/c for NEFT and transferred just 1 rupee for test purpose and it got deducted from outstanding loan amount thats why I got a doubt whether the amount I wanted to transfer(on 1st) will be considered as prepayment or EMI

      1. Kavya says:

        Yes, It will be consider as prepayment.

    3. sushil says:

      Hi Kavya,

      Do you have SBI maxgain Home loan? In normal home loans what you mentioned is correct but I am not sure if this is valid for maxgain as it has parking concept mentioned by others.

  28. Naresh says:

    I have a loan account in Bank of Baroda. I tried to pay online, but I am not sure if it is considered as a prepayment and thereby reducing my EMI or tenure reduction. When I call the bank they say it will be considered as multiple installments, therefore stopped deducting my every month EMI till it adds up to the amount I paid. I am away from my home and cant visit the bank to prepay. Please advise anything can be done from my side.

    Thank and regards
    Naresh G

    1. I think you should talk to them if you can send them cheque for prepayment ?

  29. rajasekaran says:

    i went to AXIS BANK in person and checked with their customer attendant, they clearly said pre payment for home loan thru online is not possible, they said if you going outside india, the only way is to give power of attorney to someone back in india before you leave who can deposit money on your behalf. (They will provide you the power of attorney sample page which you have to get print on a 100Rs stamp paper, get notirized and stamped)
    also in chennai you will not be able to prepay money in all branches, there is a branch in Ambedkar road, near kodambakkam where you will be able to pay pre payments for home loan.

    1. ask them if you can courier them the cheque?

  30. varadarajan says:

    can you please advise if LIC Housing Finance EMI can be paid through netbanking

    1. No, I dont think its possible !

      1. Babul says:

        I was recently advised by LIC employee about online payments. I have tied up my LIC home loan acct to my savings acct and paying the prncipal amounts. I would advice, to check with you LIC agent and also LIC employee working at branch office.

        1. Thanks for your comment Babul

        2. vijay says:

          hello Babul,

          Can i add my Loan Account number to my Bank account from which I pay emi ? Will it take care of everything. Like; will they reduce the principle?

        3. Prashant says:

          Hi Babul,
          Could you please advise on the process to tied up the lichfl home loan account with the saving account so that it will be ease to prepay online.


          1. Prashant says:

            Hi Babul,Manish,
            Could any one of you assist me on link with saving account with lichfl home loan account.

  31. Gaurav says:

    Hello Manish,
    Every month I pay my SBI Home loan EMI through NEFT transfer. I wanted to know that, if I have got some extra money with me, can I directly transfer that amount to my Home Loan account or I will have to take any permission from Bank for pre-payment?
    Is there any upper limit for such pre-payment?
    Why I’m asking this is question is because recently my such transaction has been returned by the bank with below comments:
    “NEFT Transaction for INR XXXXX has been returned by the beneficiary bank with reason DISCHARGE TRAN HAS BEEN DONE on date 31-08-2015”

    Please suggest.


    1. Hi Gaurav

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  32. Parul says:

    Can I prepay at PNB Housing Finance Limited also. I tried speaking to their DSA and he told me he will revert back but never did after repeated calls also? I am still in the process of collecting money for prepayment but I would appreciate if someone could guide me in paying online.

  33. Sureshmpt says:

    Is there any minimum amount for prepayment?I have take home loan from LIC HFL.Are they also giving this facility of NEFT transfer ??

    1. Generally its minimum 2 EMI amount. Not all companies have NEFT transfer facility

  34. ManishWadhane says:

    Did exactly that. They said it is ok. We did not inform. .Thanks for the information on this topic my namesake 🙂


  35. ManishWadhane says:

    Hi Manish. Thanks to the above discussion, i tried doing an online transfer to my SBI Home Loan account (displayed as OD account) from my SBI Saving account. It was successful.

    My question is – is it required to inform SBI now that i did this part payment online? Will it not automatically take it as a principal part payment? Or will it consider it as an “extra” EMI paid , and thereby deduct only a miniscule percentage of the EMI as principal?

    Manish Wadhane

    1. I suggest for first time confirm with them

  36. Ankit Shah says:


    I have taken loan from HDFC @ 10.25% interest rate. I am working hard for early repayment however there are two points which i think i should share here to help the readers :-
    1. HDFC has guided me for ECS and so i had done that however EMI deduction date available with them is 15th or 25th of every month. What difference can it create??? i would like to draw readers attention to the interest calculation cycle of the bank. Interest is calculated on last day of each month. so though i am paying EMI on 15th the principle amount is not getting deducted from my total outstanding till month end. so every month i need to pay interest on my EMI principle for 15 days. That is a small amount if seen month wise but if you see the horizon of 20 years that around 6-7% of your home loan. So my question is which is the most benefited EMI date which one should take to avoid above losses.
    2. For HDFC there is a big NO for online Loan Repayment. They require 3 Months Bank statement and a written statement for source of repayment amount and a personal visit to branch. I have checked with Dena Bank they allow EMI deductions but repayment is not online. For SBI I dont know — Please tell does SBI provide online repayment option , if yes i would shift my loan account to SBI.

    1. Hey Ankit Shah

      Thanks for sharing your experience with all of us. It was a great learning.


  37. Amit says:

    Hi All,

    Are these details correct to make an online payment to HDFC LTD home loan. Please advise :

    RTGS CODE: HDFC 0000003
    BANK A/C NO: 00030350001671 (Current A/C)

    Thanks & Regards

    1. Hi Amit

      Who gave you these account details ?

      1. Amit says:

        Hi Mohit,

        It is in this thread only, I got.


  38. pankaj says:

    In whose name the cheque has to be written for SBI home loan pre-payment? Thanks for the help

    1. Hi pankaj

      You should check it with SBI only !

  39. Hari says:

    I have a Home loan from HDFC Ltd and i have my Savings & Current Acct in HDFC Bank Ltd. However, i am unable to Register my Loan account number in my HDFC bank – Internet banking- “Register a New Loan ” option. Becuase it say the accoutn number should be of 14 digits, whereas my Home loan account number has only 9 digits. How do i register / add my HDFC Ltd Home Loan account to my HDFC Bank Savings/current account. ?
    Anyone’s help is appreciated. Note i am trying through Internet banking from outside India.

    1. Hi Hari

      It will not work 🙂

      HDFC LTD is not a bank, and you can only add account numbers which are with BANK . So its a futile option 🙂


  40. Urvij says:

    Though this seems an old thred, I would like to ask something here.

    From all comments, it seems AXIS bank does not allow this facility. However, I would like to know as we are nearing end of 2014, does AXIS allow this now? Has anyone been able to do it?

    1. I am not yet sure on this

  41. Aminesh Gajjar says:

    Hi All,
    I have home loan with PNB. Any one know what is loan closure procedure? I want to close my home loan and get my original documents back.. How long they will take after I pay full and final amount to handover house documents which are in their custody.


    1. Not sure, but once the loan is completed, you should get the documents in few weeks itself !

  42. Prashant Bhanware says:

    Hi all,
    I have a home loan account with HDFC Ltd.
    Can I add it as third party beneficiary to my SBI or ICICI account?
    I looked into the net banking interface of both SBI/ICICI account, but couldn’t do this.
    Please let me know the detailed procedure, it it is possible.


    1. Rishi says:

      I too have HDFC Ltd home loan account. Please suggest was to prepay online from ICICI Bank or HDFC Bank savings account.
      [for Pune area]


      1. there is no option for HDFC LTD prepayment .

  43. vijay bodhe says:

    I want to do part payment for my home loan every month or once in quarter, I have IDBI hoam loan saving account how I can do this , please suggest

    1. You can do it , but the thing is your prepayment amount has to be above your EMI .. Check with your bank

  44. Danny says:

    I took home loan from HDFC bank for a period of 240 months. Due to change in ROI, the tenure has now extended to near 300 months. HDFC bank gives me the option for reducing the tenure by paying some money along with processing fee.

    My question is, which among the following 2 options is more beneficial :-

    1. I pay the extra money along with processing fee and reduce the tenure to under 200 months (In this case my EMI remains the same, but the ROI and tenure reduces … though the ROI can again change back at the time of next revision (which generally happens after every 3 months))

    2. What ever money i am paying in part (1) above, i pay that as part prepayment amount and there by reduce my principal by good amount (I am not sure, but i think that if my principal gets reduced then my tenure should automatically get reduced. EMI and ROI remaining same)

    I am not sure, which option is better among the above two. Or is there a better 3rd option also available ?

    Can anyone advice ?


    1. I think you should go ahead with both the options anyways . Pay the extra money whenever you have it and also one time, pay the extra fees and get the tenure reduced !

  45. Deep says:


    I don’t know if this helps. But let me try explaining my situation.
    I have a ICICI salary account and i have taken home loan through ICICI.
    So first thing i did was to link LOAN account with Salary A/c. (Helps big time !).
    Then for the first time, i did my first “part-prepayment” without visiting any ICICI asset branch. I went through the website and figured out that NEFT transfer was possible. So i checked with customer care and here are the truths with respect to ICICI part-prepayment.

    1) Part pre-payment cannot be done anything less than the existing EMI amount. So in other words, one can do part-prepayment only in multiples of EMI (one or more). Eg. If your monthly EMI is Rs.30K, you are eligible to do part-prepayment of amount from Rs.30K to any amount you are comfortable with.

    2) Part pre-payment can be done via PHONE BANKING and not required to visit any ICICI asset branch. Your debit card with password keyed in will be taken as input to process a NEFT transfer.

    3) The catch here is, such PHONE BANKING NEFT Transfer is limited to max amount of 6 month’s EMI and nothing beyond that. (ie.) With above example, “every” month, one can maximum settle Rs.1,80,000 (ie. Rs.30000 * 6) as part pre-payment. You can also settle Rs.1,80,000/- separately on last day of previous month and 1st of next month which is VALID.

    4)Such restrictions doesn’t apply when you visit personally to any ICICI asset branch to settle.

    My 2 cents: Per month, maximum allowance of 6 month’s EMI amount to settle has more room for individual loan customer. Also, one doesn’t have to make any personal visit. This definitely helps those who are out of India. Also prevents the route of settling via power-of-attorney (it has it’s own risk too!!!).

    More than anything, i am happy for 2 reasons
    1. I did such NEFT transfer and the amount got transferred in same day and revised amortization schedule will be couriered to your home address and in two days of time, the same will get reflected online in your loan account which you can verify.

    2) Part pre-payment for floating rates DO NOT ATTRACT any pre-payment charges from ICICI.

    Happy part pre-payment partly and multiple times to close the loan soon 🙂

    PS: I just stumbled upon this website and was really happy to see some great articles which induced me to write in detail here… Great work… Please keep continuing…. Happy Awakening 🙂 !!!

    1. Thanks for sharing these insights about ICICI pre-payments Deep !

    2. Mitesh says:

      Thank you Deep for the detailed information.

      Do you happen to have the customer care number that you used for the transaction?

      Thanks again

    3. Ajit says:

      Deep ,

      When you do part payment with NEFT , outstanding principle is reduced , with reduction in the loan duration . Is it possible to reduce the EMI amount with loan duration is same.

      1. Ravi says:

        I’m also trying to find out the way to transfer from ICICI savings account to ICICI home loan without visiting branch office.

        Ajit, are you able to pay thr phone banking? did it reduce EMI amount?

      2. Bharath says:

        Dear Deep
        I have an SBI Home Loan. Your Question reminds me about an Article in Economic Times.. When we have surplus cash we may tend to pay extra as pre payments. In some cases like when we lose job or we moved to a low paying job for survival it may not be possible to pay the Same EMI as we payed earlier. In this case there we can meet the branch where we took the loan and request them to reduce the EMI based on the Pre payment we did before. The Bank may also consider doing it. Why dont you enquire with the Concerned branch??

  46. Geethari says:

    Hi, I have a home loan from ICICI and I am living abroad. Would like to know the possibilities if any to do the NEFT of Partial Loan payments (without visiting branches for any service request number) from other banks such as IDBI, SBI & Corporation Banks ! I really appreciate a quick response from someone here.. Thanks in advance.

    1. Yes you can do that, if its not possible online, then you can send cheque’s to loan account number to branch here in India

  47. srinivas says:

    Hi Friends,

    I know many of you are referring to adding the Home loan account to your Online banking as a third party transfer, through which we could transfer pre-payment online.

    I am really worried becoz one of my friends was paying the pre-payment as soon as he had good cash, and after doing so for after 5 years he checked the home lopan statement, to his shock the lumps sump amount which he has been paying as pre-payment doesn’t replicate to his home loan account statement. When enquired its updated by bank that all the pre-payment done was considered as ADVANCE EMI Payment…… that was a shocker of his life… all hard earned money gone in Interest not settled against Principal amount.

    Now everytime my friend has to go to bank fill in the form hanging through the large line and then ensuring that the bank considers the amount as pre-payment and settles against Principal.

    Does your suggestion of adding home loan as third party transfer fits in Pre-Payment against Principal or does the bank consider it a ADVANCE EMI 🙂 Appreciate your feed back.


    1. Hi Srinivas

      Which bank is this ? There might be some banks who are doing this, I would recommend anyone to make sure they check it after 1-2 payment and not wait till last moment !

  48. Senthil says:

    Hi, for those facing issues with ICICI bank home loan, I can confirm that online payment is either cumbersome or impossible. For NEFT transfers from other bank accounts you are asked to visit the ICICI branch and get a Service request number and then include the SR number in the NEFT request. For ICICI SB account, there simply isn’t any way at all ! I wanted to punch them in the face, when they said I could call Customer care and make payment.
    I have been doing this for past few months now. You need to call Customer care, 8am-8pm, M-F, minimum is 1 EMI amount, max/month is 6 EMIs amount. You will need Loan a/c #, Debit card # and PIN for IVR authentication.
    One catch here is that, if you need to reduce tenure there are normally no issues, but if you ask for reducing EMI, more often than not, some strange system issues will come up and they say they can’t calculate the amount in the tool and ask you to call back ‘after some time’. This happened at least 4 times to me, and I don’t know whether I am that unlucky to always call when their system is down, or is it them being smart.
    Anyway, at least try the ‘Reduce Tenure’ option by calling them, Good luck.

    1. Thanks for sharing that with all of us Senthil

  49. Manoj Singh says:

    I am planning to transfer my balance from HDFC to SBI MaxGain and my loan is also approved however I am yet to take call due to following reasons:

    – They took 1300/- as legal fees while my apartment is approved project for SBI HL at the time of application
    – Now after approval, they are asking for 1000/- as processing fees and 7000/- for mortgage fees for the loan of 15L amount for interest of 10.15%.

    Now I am not sure if this is good enough to make transger as I have option to go for conversion from 11% to 10.25% after paying some 4K. What you guys suggest?

    Also, one more question can we make any prepayment of any amount or there is any restriction like one EMI or some thing….

    Appreciate your response.

    1. Hi Manoj, can you open a thread on our forum for this query – http://www.jagoinvestor.com/forum

  50. Amit says:

    I was trying to pre-pay the SBI car loan in Full via NEFT (originated from HDFC Bank). However I have received a return message from NEFT stating “use discharge transaction to pay off entire loan”.
    I do not know what does this mean. The RBI site also does not have anything related to this message nor the SBI.
    If you have come across such situation then pls. let me know the way out.


    1. I am not sure if SBI supports this , please try to connect with SBI once on this offline

    2. ankit says:

      i have faced the same problem. Please share if anyone having information regarding this issue

  51. Abhijit says:

    I am planning for a home loan from IDBI bank .Like to know about the part/pre closure rules like is there any time ,amount limit and the any penalties charged by the bank.

    1. Almost all the banks have removed the pre-closure penalty as per RBI guidelines.

      1. Abhijit says:

        Thank you for the reply Manish.I had contacted IDBI bank ,they informed me that there is no pre-closure charges.But they want me to do insurance for the flat I want to purchase and myself.I wanted to know is it optional or necessary for all the banks now.

        1. Its not at all mandatory. They are just trying to cross sell you products !

  52. Venkat says:

    Hi, I am an NRI, has Axis Bank Gold loan and credit cards in ICICI, SBICard, Standard Chartered etc., in INDIA. For payment, I opened HDFC NRE account and successfully paying through NEFT.
    Axis bank loan account allows NEFT payment from other banks, takes 1 to 2 days to credit the amount.
    All my credit cards paid through NEFT and closed credit card online.
    ICICI has service requist option. ICICI login in -> credit card ->service request -> other requests -> cancel Credit card -> choose card and fill details & o.k. i did not respond to customer care since i am away from india. In 2 days, they closed credit card and send confirmation mail. I cut & disposed card.
    SBICard : I approached to sbi customer care through e-mail after paying all dues, afer couple of queries and confirmations, SBI closed my credit card and send confirmation mail. I cut & disposed my card.
    Standard chartered card: while i was on trip to india, i called their customer care and asked to cancel card, after few verifications through phone, they cancelled card in 3 days time. i tried to use the card online for small purchage but not successful, means card was closed. even after 1 year my standard chartered login was active on their system shwoing card details and negative balance, since it was lifetime free card, i wont bother.
    Regards, Venkat.

    1. Thanks for sharing that Venkat !

    2. Govind says:


      Could you please let me know the IFSC code or branch details which you have used to pay the Axis bank loan ? I am having home loan with axis bank and trying to do part payment using NEFT


      1. Hi Govind

        You must have taken the loan from some Axis Bank branch , right ? Now when you choose to do the payment , choose the account number as the LOAN ACCOUNT NUMBER and the IFSC Code should be the branch IFSC code from where you took the loan and then make the payment

  53. Ramya says:

    Hi Manish,

    My husband has a home loan from HDFC. We are planning to make small amounts of pre-payment from ICICI bank through NEFT. The issue is that he holds account with HDFC, but I am the one with ICICI account and have net banking enabled and he has locked his net banking account with HDFC. As we are outside the country he is unable to unlock his online banking. My question is can I add my husband’s loan account to my ICICI and make NEFT transaction? will that work? Please advise.

    1. That might work , but I strongly suggest against it . If loan on his name, let him pay from his account only purely!

  54. Sudhakar says:


    I have started making pre-payment to my SBI home loan from last month. My actual loan amount was 29.16 Lacs. Till last month, I used to pay monthly EMIs and brought the outstanding loan amount to 26 Lacs. Then, I transferred 1 Lac directly to the loan account to make the outstanding balance as 25 Lacs [NEFT transfer from my savings account to the loan account].

    Now, after few days, I see that my outstanding balance is 25.22 lacs. When I checked the transaction history, I notice that an interest of 22,000 has been debited to my loan account.

    I haven’t seen this interest debit to my loan account till from my first EMI. I’ve been paying EMI for 2 years and this is the first time, I see this in transaction history. Is it anything to do with the pre-payment? Please clarify.

    P.S: I’m a first time borrower and seeking help to understand about the concepts.

    Also please let me know the meaning of C.Y.YTD Interest & P.Y.YTD Interest.

    Thanks in advance for the help!

    1. I think bank will be in best position to clarify what is it exactly ?

    2. PxDx says:

      Current year year-to-date (C.Y. YTD) and Previous year year-to-date (P.Y. YTD) interests
      C.Y. interest to date refers to the interest accrued in the current financial year on you loan amount.
      You take a loan of 1 lakh rupees on 1 Jan, 2014 @12%p.a.
      The C.Y. interest would be calculated from 1 april and would amount to Rs. 4000 (approx) on 31 july.
      The P.Y. interest woukd be around Rs. 3000 i.e till march end.

  55. Prashant says:

    I think it makes sense that it should work b’coz banks use NEFT to withdraw your EMI from your chosen bank account. But, doubt is, how banks treat such payments ? I have ICICI Bank Home Loan and I have setup CITI Bank Savings Account for EMI payments. Can I use Citi Bank to make part payments ? If I did, will ICICI bank accept it and send the revised schedule ?

    Has anyone tried this combination ?

    1. the only option to know is to TRY !

  56. nitin bourai says:

    well my experience was different.
    i have a home loan from BOB and when i prepay my home loan principal , the amount was not reduced, went to bank next day and found that if one transfer amount in loan account, bank takes it as Advance Payment to the EMI not as prepayment.To prepay i need to send email to my branch with the instructions of Amount.
    The services are good from BOB but cant pay via online.

    1. Yes, online payment is not possible in many banks , even in HDFC LTD , its a issue 🙂 .

  57. sathish says:

    Hi Manish,
    I have just processed SBI home loan for an under construction property, i need to start paying the Pre-EMI for the amount getting disbursed. I would be travelling in another couple of weeks and i found your article really helpful. My question is i would like to do NEFT transfer from ICICI bank Savings account to SBI Home loan account. From your article i understood it is possible. Just wondering whether the steps are correct. Is it same as registering a payee in ICICI netbanking Fund Transfer to Non-ICICI bank option with the account type chosen as Loan Account? Or is there any other formality/Step to be done?

    Sathish G

    1. Yes, correct . This is the procedure . Just try it and see if testing is working or not !

      1. Suryakant says:

        With the steps mentioned above, I tried to transfer just little more than my EMI amount from ICICI to SBI home loan account. It got reflected in SBI account after NEFT was processed (NEFT is processed in hourly batches).
        Thanks, it saved a trip to post cheque. !!!

  58. Rahul says:

    I have a loan in LIC HFL and have bank account in HDFC. For adding any third party transfer, HDFC needs IFSC code. I am trying to get IFSC for LIC, but I cannot find it anywhere. Could you please help me in how to get that?

    1. LIC is not a bank (same as HDFC LTD) , so no facility to make NEFT payments !

  59. Raju says:

    Even I am in the same situation.. I have my home loan account with Axis Bank and currently I am living in Canada.. due to time difference between Canada and India I am not able to contact them on Phone sent couple of mails but haven’t got any reply.. I would like to do a part pre payment don’t know whether this option is available in Axis bank with out going in person. Do you have any idea about Axis Bank prepayment through online.

    1. Raju

      I am not sure, but if you dig down the comments section , I am sure you will get some . Anywyas, you can send a cheque to their address for prepayment in worst case .

  60. Pramod says:

    I have a home loan with LIC Housing Finance and wanted to prepay online.
    When I inquired their office they gave me a HDFC account number with IFSC number and asked me to transfer the amount using NEFT or RGTS. Once transaction is complete they asked me to send transaction details to them and they will send me soft copy of the receipt. They gave me an email address where I need to send the transaction detail.
    Is this safe as it seems they are asking to transfer money to a common HDFC bank account maintained by LICHFL.

    This is for Hyderabad Branch.

    1. Ashish says:

      Pramod – Did you try this out? Does this work?

      1. Pramod says:

        Yes It worked.
        Initially, I transferred small amount before Transferring bigger amount.
        They send me updated ledger statement showing amount I transferred and corresponding transaction details.
        Since they do not update LICHOUSING website on daily basis I am still waiting to view updated amount with my own login.
        I verified bank account which they gave me by my internal contacts before I transferred the money.
        The guy who was handling this from their office was quite helpful and he helped me in waiving prepayment charges too.

        1. Somu says:

          Hi Pramod,

          It is very good information, do we have to go to LICHFL office to get these details or is it possible to share by you.

          I have another doubt:
          I took LICHFL home loan in Jan this year and started paying first installement in Feb 7th. My 6th month payment completes in July. Do i have to wait till July or i can start paying part prepayment now onwards.


          1. Pramod says:

            Hi Somu,

            I sent one of my friends to LICHFL, Hyderabad to collect the bank details.
            You can ask anyone to go there to collect the bank details or you can send an email to Hyderabad manager email address available on their website.

            Why do you need to wait for six months to start lumpsum prepayment.
            Is there a LICHFL policy like this? I am not aware of this. I took loan 2 years back.
            Also, the above method of payment is for Hyderabad Branch. I am sure about other branches.


            1. Loga says:

              Hello Pramod,

              I enquired with LIC Housing Loan office @Chennai on the HDFC account details as you have mentioned. The response I got from them was that they do NOT have any HDFC account as such for me to do online payments. When I told them that the LIC HL Hyderabad office does have that facility, they responded me that if their HYD office has that facility, then Chennai office should also have that provision but they are not aware of such HDFC account for their Chennai office.

              Can you please e-mail me to logu75@gmail.com about your contact details and the contact details of LIC Housing Loan office @Hyderabad for me to call them and find out more information on this aspect if I can?

              Thank you.

        2. Ashish says:

          Thanks a lot for the information Pramod, I appreciate.

        3. durga says:

          Thank you, this is informative.

  61. Guest says:

    It should be possible but the acceptance of prepayment by them may be an issue as their statement.

    “The Service Request number received during branch visit must be mentioned in the remarks column in the NEFT form while making part prepayment through NEFT. Please note that the transactions with invalid request numbers will be rejected.”

  62. Guest says:

    Thanks for the response Manish.

    Adding should not be a problem, but payment acceptance may be an issue, if you can look at the below warning in their site.

    “Please note that the transactions with invalid request numbers will be rejected.”

    this may be the same as “vijay February 15, 2013 at 7:24 pm” AXIS

    1. Then its a bank policy issue

  63. Guest says:

    Thanks for the response Manish.

    Adding should not be a problem, but payment acceptance may be an issue, if you can look at the below warining in their site.

    “Please note that the transactions with invalid request numbers will be rejected.”

  64. GUEST says:

    MAY 25, 2013
    Talked to ICICI customer care at Home loan portion, but surprisingly they are not aware of the NEFT and were saying its not implemented yet. 🙂

    then i needed to explain to them citing the webpage.

    Has anyone done this from oversees, please share your experience on ICICI

  65. brindha says:

    Sir, i availed housing loan from HDFC bank, whether
    repaymet through neft is available or any other solution for online repayment, pls suggest me

    1. NEFT should be there

      1. PxDx says:

        PEMIs and EMIs may be repaid through post dated cheques (PDCs), Electronic Transfer (NEFT) or the Electronic Clearing Service (ECS) method, by the 5th day of every month


  66. Hello says:

    Bank should enable NEFT as per RBI’s letter.. Refer the below link


    1. Thanks for sharing that great news 🙂

    2. Sohan says:

      The notification seems to be more of a complaint from an end user to RBI. Can’t see anything from RBI on the same.
      Please share the link if RBI has specifically mentioned to all the banks for allowing NEFT credits to the loan accounts.

  67. vijay says:

    I tried to payment to AXIS from MY ICICI Bank and the money got returned and the reason i got is , we cant to any NEFT transfer to Home Loan Account, Only way is going to Home Loan Asset Center and doing the payment directly.

    We regret to inform you that there is no provision for transferring funds online to your Loan account. However please find the process for making Partpayment to your loan account:

    We request you to visit the nearest Axis Loans center along with your Photo ID proof, Cheque Book and place a written request for the same.
    Minimum Partpayment amount to be paid is one EMI.
    You can make the payment through Cash/DD/Cheque.
    If you wish to make the payment through Cash, you would need to Deposit the funds in Axis Bank Liability Branch and have to Deposit the Deposition Slip in the Loan Center.
    You can either choose to reduce your EMI / tenure. If not mentioned tenure will be reduced by default.
    Please be informed that you can send a representative on your behalf, if you are unable to visit the Loan center by providing an Authorisation letter. In case of sending the request through a representative please provide the following:

    Copy of your ID and signature proof
    Authority letter from the applicant
    Copy of ID proof of the representative
    Assuring you of our best services.

    Customer Service
    Axis Bank Limited.

    1. May be Axis does not allow it

  68. Rakesh says:

    I tried NEFT to prepay my BOB Home Loan a/c, but it always treats as Advance payment.
    The good thing is Principal amount is reduced immediately. For-eg. if my balance principle is 10 lakh, EMI is 10000 and payment date is 16th of each month. And when i transfer on 1st of every month using NEFT, principle reduces to 9.9 lakhs immediately. But on 16th, it increases again by interest amount like 9.96 (assuming interest part was 6000) and there is no automatic debit from my linked saving account.
    So, may be the only benefit for me is I can save some marginal interest amount for 15 days i.e. (from 1st to 16th).

    1. Chethan S. says:

      I’m seeing the same behaviour with my Syndicate Bank home loan account. Bank officials say the benefits are same in terms of interest saved except for EMI not getting deducted on specified dates. I have noticed that till advance amount is used up EMIs don’t get deducted. I understand that with this our loan tenure won’t get reduced.

      I was told by bank officials that they have set ‘Advance’ as default to avoid hardship to customers as many find it hard to pay a month’s EMI after making lump sum advance payments. They also told me that if I am interested to get EMIs deducted at the end of the month I must ask them to consider the pre-payment as ‘Part Payment’ and not ‘Advance’ payment.

    2. May be BOB does not allow that prepayment … check with them !

  69. Ankur says:

    Hi Manish,

    Do you know if part payment is possible for HDFC home loan thru NEFT? It’s not clear from the comments….


  70. Dinesh says:

    I have home loan account in citibank and saving bank account in HDFC. I want to make partial prepayment for home loan whether it is possible to transfer money from HDFC to Citibank home account.

    1. Yes, just follow this procedure and you should be able to do it !

  71. Saudagar says:

    Hi Manish,

    Quick question is this facility available for LIC housing finance ? tried searching net with out mush sucess


    1. Anand says:

      It is not available for LIC housing finance, since it is not a bank.

    2. No it will not be because LIC housing is not a BANK and you need a IFSC code to do the NEFT transfer !

      1. jagdish joshi says:

        So is there any other way to pay prepayment LIC housing, or I have to India and visit the LIC housing finance?

        1. the best you can do is send the cheques !

          1. Jagdish Joshi says:

            Thank for your reply, not sure if they have any prepayment charge on certain amount. Because on my loan sanction letter they have mention prepayment change is 2% but when I called LICHFL today they were saying there is no penalty/charge.

            1. Prepayment charges were removed some time back by RBI

            2. pramod says:

              For LIC upto 10% of loan amount no prepayment charges. If you cross 10% you will end up paying 2% extra.
              You can avoid this 2% if you show source of income.
              This happened with me.

            3. Arpit says:

              Hey pramod, Can you share those IFCS code & other details of LIC bank. Let me write an email to LIC HFL to add this information in public portal so more & more people can start pre-payment.

              They should also add an option for Pay Amount on this website. http://customer.lichousing.com/NewWebSite/index

            4. Sreenivas says:

              Lichfl: i sent a mail to lichfl hyderabad and they sent me details of a bank account for neft transfer and asked to send them details of transfer along with bank statement to avoid prepayment charges. Transferred some amount yesterday and waiting for their reply/changes to be reflected on their site.

            5. Nitish says:

              Hi Sreenivas,

              Did it happen? Did NEFT transfer get reflected in your part payment against loan amount?


            6. Muthukumar says:

              Hi Sreenivas,

              Did NEFT transfer work out successful for you? If so, what acc no & IFSC did you use?

            7. Abhay says:

              Hi Sreenivas, did you get to re-pay your loan sucessfully? Can you share any details you have for the bank account etc? Also, can you provide the email where you send your query for getting the bank details?


  72. Jeyam says:

    I too want to add my HDFC loan account with ICICIbank,

    Can you please provide the step by step procedure. It help me and others.

    1. The steps to be followed are exactly same as mentioned in this article.

  73. Ram says:

    I tried registering my HDFC home loan account in my ICICI bank account. The registration was successful. But when I transferred a test amount of Rs. 500 the amount returned back. ICICI customer care told that no such account exists.
    Then how the registration is accepted.

    Please tell me what could be the reason.


    1. Its obviosuly false to say that no account exists , because it does in reality 🙂 . Are you sure you have added the right IFSC code along with correct name of the person, because this should work

      1. Ram says:

        Yes, After some chasing with HDFC bank, I came to know to which HDFC bank branch my account is linked.
        Then in ICICI website I went through location option and found its IFSC code. I am the loan account holder and I entered exactly how my name is printed on my loan agreement.
        And the registration was successful.

        I have doubt on the amount I have transfered (Rs. 500)
        Shall I try transfering some amount greater than my EMI

        1. Yes, better try with a bigger amount , in worst case it will come back .

  74. Vishnu says:

    Hi Manish,

    Good piece of information there. I can confirm that I had used this method effectively in the past 2 years to finish off my home loan. SBI folks (at Indiranagar PBB, Bangalore) themselves had suggested this option. Since setting up the account, I had done transfers from Citibank, ICICI, HDFC to my Home Loan account in SBI and I could monitor all these tranactions in both the banks involved at ease. Just to add, the home loan was set up initially in the form of cheques (exact EMI), but once these were finished, I set up auto transfers. I also topped up whenever I could using online transfer.

    The only thing to look out for is the last transaction which effectively closes out the loan. SBI insisted that they do this last transaction (some 500 rs left) in cash so that they can give a written confirmation. I am pretty sure all other banks will have similar constraints during the closure of the loan and thats completely understandable.


    1. Nice to hear your experience . thanks of sharing it !

  75. Robins Tomar says:

    Please share the IFSC code of HDFC Ltd for transferring fund online. I know few folks here have successfully added HDFC home loan with their bank.

    1. YOu need IFSC code for your HDFC Branch where you loan account is there, not any IFSC code. find out from internet

      1. Robins Tomar says:

        Thanks for the suggestion. I have the loan from HDFC, New Delhi and they finally provided me the NEFT details after following up for over a month. Online payment should be at least 3 times of EMI.
        I am sharing that detail here, so that it can help others-

        RTGS CODE: HDFC 0000003
        BANK A/C NO: 00030350001671 (Current A/C)

        1. Thanks , I am not sure why you have given your own account number ?

          1. Robins Tomar says:

            No Manish, this is not my account number. This the current account number of HDFC Ltd, Delhi where people can prepay their loan via NEFT/REGS if they have taken loan from HDFC.

            1. ok great .. did bank give you this bank account ? Because I have never heard of something like this .

            2. Robins Tomar says:

              Yes, HDFC provided this to me in email. I actually logged a service request with HDFC and got in touch with bank personals and got this info and they suggested that this can be used for prepaying home loan provided the amount is at least 3 times of EMI.

            3. hmm.. thats a little surprising 🙂 . Never thought that banks give this kind of facility !

            4. Sandeep Sharma says:

              Hi All,

              I raised a query in HDFC home loan login and got reply within 3 days with exactly same information as provided by Robins above. Did not try doing some part payment till now.
              Thanks for this information. 🙂 Never thought it can be that convenient. 😀

            5. Lakshmi says:


              I contacted HDFC Chennai branch for NEFT transaction. They mentioned that NEFT payment facility is not available. Please let me know if anyone contacted HDFC chennai branch and able to add account succesfully.

            6. Is there only one Chennai Branch ?

            7. GUEST says:

              GOOD ARTICLE.

              found on their site::::

              28. Can I make a part pre-payment on my Home Loan Account through NEFT with ICICI Bank?

              Yes, ICICI Bank accepts part pre- payment of your Home Loan through National Electronic Funds Transfer (NEFT). In case you want to make part pre-payment on your Home Loan Account through NEFT you need to visit the nearest ICICI Bank branch. For the list of Branches nearest to you please click here. The Service Request number received during branch visit must be mentioned in the remarks column in the NEFT form while making part prepayment through NEFT. Please note that the transactions with invalid request numbers will be rejected.
              NEFT is a nation-wide payment system facilitating one-to-one funds transfer. Individuals can electronically transfer funds accross the country from one bank to another bank participating in the Scheme.

              Talked to ICICI customer care at Home loan portion, but surprisingly they are not aware of the NEFT and were saying its not implemented yet.
              then i needed to explain to them citing the webpage.
              Has anyone done this from oversees, please share your experience on ICICI


            8. Why dont you try to add the loan account once and see if its successful ?

            9. Generally its possible , but not sure why its not happening from outside india

            10. Welcoem 🙂 .. good to hear that !

            11. Ashok says:

              If I recall correctly, HDFC Bank and HDFC are different entities and one cannot make NEFT trasnfers to HDFC Home loan accounts. Some HDFC branches provide you facility where in you can transfer the money through NEFT to their common account and provide the transaction details, then they verify the transfer and credit it to your loan account. Remember, the account mentioned in HDFC’s common account and you need to keep track of the transaction details and update them.
              The same could be true about other Housing Finance companies. They may give you their bank account details and ask you to transfer to it, and then give them transaction details to update your loan account.

  76. akshay upadhayay says:

    Great !! Just loved the blog 🙂 🙂
    Just added PNB Education Loan Account to my HDFC bank. No such error generated as PNB loan a/c normally contains alphabets too 🙂
    Thanks a lot!!

    1. Glad to hear that .. so did the transfer happen ?

  77. Krishna says:


    As per RBI notice all banks should allow NEFT against Loans


    1. What is meant by “NEFT against loans”

  78. Krishna says:

    Hi Manish
    First of all Thanks for sharing this info. I could add my HDFC Loan account to ICICI as NEFT Loan Account. It worked atleast in adding the account. Does that mean I can transfer money from ICICI to HDFC Loan Account. Hope the money does not get stuck somewhere and I spend days in tracking where the money is…..

    Krishna Raju

    1. Yes, you can transfer the money, if it does not go there , then it will come back , do one thing , transfer a test amount first 🙂

    2. Manish says:

      Hi Krishna – Any luck with this? Did you manage to confirm being able to make payments through ICICI ?


      1. chanpal says:

        HDFC loan payments either NEFT or any other form of electronic transfer does’nt work. HDFC does not allow it. It used allow from a third-party, where they used to collect Rs. 110 for each transaction. They prefer to collect that way, but per RBI guidelines they can’t do that. HDFC is a “old” housing loan corporation like their ideas and customer service.

  79. Sujan says:

    Last year i took home loan from SBI. For the last six mnths i was looking for a solution so that i can repay my loan amount as early as possible. Because loan burden over my head was keeping me restless nights.

    AT LAST!!!! Solution is here!!! http://www.livemint.com/2012/05/17210535/Small-part-prepayment-steps-to.html

    And special thanks to “Manish Chauhan” simplifying all the technical issues and how it could be easy to repay the loan just sitting at home.


  80. Hari says:

    I spoke with ICICI customer care people in this regard that i want to link my ICICI saving a/c to Axis bank home loan account for pre-payment.
    They said this kind of option/feature is not available in ICICI bank.
    But My EMI payments were happening automatically via ECS that we had setup initially.
    So i would like to know from you all guys whether it is possible to
    link up my ICICI saving a/c to Axis bank home loan account for pre-payment?

    1. You better try it on your own. dont ask customer care. if it works, good , else there might be something which will not let it work .

  81. Hari says:

    How do i link my ICICI saving account with Axis bank Home loan account for PRE-PAYMENT or PART-PAYMENT of my home Loan amount ?

    1. Are you not able to do what is mentioned in the article , what exactly is the issue you are facing !

  82. shahzad says:

    Prepayment NEFT transfer from xyz to IDBI.
    I spoke to idbi customer service they said it is possible. Please confirm! will it work? In case if it does not transfers what will happen to my money. will it come back to xyz account?


    1. Just go ahead.. if it does not work , it will come back !

  83. Sudhir says:

    Great and useful info. I’ll definately give it a try.
    Such small steps can bring down my home loan over a period significantly.
    Thanks for the simple to use, info again.

    1. Sure .. take action and update it here !

      1. Padma says:

        Thanks a lot Manish. I went through your blog and went ahead in pre-payment of my car loan. It just happened in a jiffy. The amount got credited into my car loan account and it is also showing the outstanding amount. Thanks a lot!!!

        1. Good to hear that!.. just spread this knowledge to others !

  84. sp says:


    Thanks for the post. Its very useful. I have a question though. I’m trying to add a LIC housing loan account to my bank account. In the process, it asks to select the bank & its IFSC code. While I have added other bank accounts in the past, I don’t see “LIC Housing” name in the list and hence no IFSC code. Do you have an idea about this? Without these two important fields, I can’t add the loan account.


    1. You can not add LIC housing into your Bank as third party for the same reason you mentioned that it does not have a IFSC code ! .

    2. Rajesh says:

      The reason is LIC Housing Finance is a Non-Banking Financial Corporation.

  85. Bohnnie says:

    I went to ICICI Bank and they said that they can accept only an amount greater than EMI as pre-payment. Is this true?

    1. Bohnnie

      Yes , a lot of banks have this rule clearly mentioned in the agreement that the Prepayment can be done only above the EMI number, for some banks its 3x times the EMI .

  86. thakur singh rawat says:

    Hi All,
    After reading the above article i tried to make payment to my idbi home loan from hdfc bank online site. I transferred some amount from the bank site and within 46 minute it got credited to my idbi home loan account. I called the customer care no after 3-4 days to check the balance (to make sure that the amount got credited) and she confirmed it.
    In hdfc account you can enter the loan account no as loan account in third party transfer link and once it is added (after 24 hours) you can make the money transfer to your home loan account.

    1. Thanks for confirming this 🙂

    2. Venkat says:

      pls confirm 1. whether u r talking about prepayment or part-payment;
      2. was there any penalty after that;
      3. did u pay higher than ur emi.
      i am also planning in the same way. pls thro some light

      1. Part payment and prepayment , what is the difference ?

        1. venkat says:

          s tey r same

  87. Ajay says:

    Hi there,
    i have loan in LIC housing finance, Andhra Pradesh.
    I am out of Inida right now, I want to repay the loan amount from my icici account.

    how can i do that? please suggest.


    1. I think one way for you would be to send a cheque to your bank on this . As LIC HF is not a bank , hence there is no concept of NEFT with them .

  88. Prateek Agarwal says:

    I have taken the Home loan from Axis Bank and pay my EMI from ICICI Bank through ECS Facility and want to attach third party account to make the pre payment of my home Loan

    Please suggest me for the facility

    Prateek Agarwal

    1. Are you not able to connect the loan account with the same Bank account for prepayment also ?


    2. Krishna Prasad says:

      I also want to prepay the home loan in Axis bank via ICICI. If you got any option to do this, please suggest.

      1. Jeeva says:

        I have Axis bank home loan. What is the IFSC code for the home loan a/c.
        I don’t think it is linked to any branch. Kindly guide me how to add my axis bank home loan a/c?

        1. It will be linked to the same bank branch from where you got the loan . Use the IFSC code for that same bank branch ! . try it and it should work !

          1. Jay says:

            Seems like it does not work with Axisbank. I tried using the loan account number and the IFSC code of the branch. It failed when I used both SBI and HDFC to transfer money. There are two possibilities: One there might be completely different branch for the loan account or the loan account number which start with PHR must be completely different when used internally.

            1. Did you also check with the bank on this ?

  89. Pankaj says:

    Just got the Car Loan from SBI; sanction was fast but disbursement was slow. Younger staff is energetic and helpful but old and lethargic employees are spoiling the image of this bank. Still, I went ahead with SBI (5 yr. tenure) due to Lowest interest rate, Daily Reducing Balance and No Pre Payment charges.

    As I hold Saving account with the same branch and now car loan account is linked with it. As soon as disbursement of loan was done by bank; I started paying off outstanding thru “Funds Transfer (Own Account)” facility of SBI Online banking.

    Wish to payoff my loan soon. 🙂

    1. Good to hear that .. I am sure you will pay off your loan soon . Linked accounts are very convinient as you can pay as you get some money in your account .

  90. Nitesh says:

    I called the branch and they emailed the electronic statement till date.
    If one has a savings account also with SBI then they can get the information by calling the customer care. As I had only loan account, I had to call the specific branch to get the info. I am amazed at the quick response.

    1. Good to hear that ..

  91. Nitesh says:

    I have made a few part payments online to my SBI loan. Is there a way to check the balance amount online using the loan account number?

    1. Nitesh says:

      I want to know if I can know my outstanding amount without visiting the bank.

      1. That information is with Bank only .. you cant get it otherwise

    2. Doesnt it show the “outstanding balance” for you ? Check with bank if its activated

  92. amit mathur says:

    Hi I have a loan account in LICHFL.
    Please tell me can I link my LICHFL loan account to SBI or ICICI saving accout and can do the pre-payment.I tried to liny my SBI/ICICI saving accout to LICHFL but cant do so. I also cant found the MICR or IFSC code for LICHFL.
    Please help.

    1. Amit

      Generally there will be issue with non-banking institutions like LICHFL .

  93. M Sharad says:


    I tried to link My HDFC Loan account to HDFC saving account.
    But it failed to add account because while registration, 14 digit acc. no. is necessary.
    And the home loan acc. no. is only 9 digit.

    Please let me know if i am doing anything wrong.

    Thanks & Regards,

    1. No , I think that can be the reason .. This will not work in all the cases like yours

  94. haribhaskar says:

    Hi Manish.. Thanks for your response. In fact, I visited RACPC, Chennai on 16.04.2012. I am surprised to see the good response from the working under, Mrs. Bharathi, DGM. The lady staff, missed her name, she briefed me all about the concept and suggested a way out of reducing the No. of Months of EMI by suitably increasing the EMI. It was my misconception that SBI doesn’t serve properly. I take back my words. Thanks to SBI, RACPC for good response and making thinks easier for people who have availed home loan. I have reduced my EMI period from 180 to 108 months by a small increase of 1,000 pm in EMI. Happy over all. Thanks Manish…

    1. Haribhashkar

      Good to hear that .. 🙂

  95. haribhaskar says:

    Hi Manish, thanks for all the articles and replies to our questions. i have a question… i wish to make part payment to my sbi home loan account. i am having onlinesbi account with the facility to transfer fund. my intention is to reduce the period of emi and maintain the monthly emi amount as is. how to instruct the bankers wihtout going to racpc in person.

    1. Haribhaskar

      I think by default , they will reduce the tenure only .. how is your EMI going ? If its going through ECS or PDC , anyways they will keep cutting same EMI


  96. Ravi Shankar says:

    Hi Manish and Readers,

    I am planning for a Home loan from SBI and had given the application.If I can get the SBI Maxgain(Manager told he need to verify) , I had a question.
    If I want to make a permanent pre-payment and do not want to withdraw it from MaxGain account anytime in future , Is that Possible?How to do it online?
    For example , I had 2 lakhs surplus with me.Can I pay 1 lakh permanently and keep 1 lakh in OverDraft account so that I can withdraw this 1 lakh in case of emergency?
    Manish , as you are also customer of same bank , can you clear my doubt and advise me the best way to proceed for SBI Home loan?

    1. Ravi

      I am not a customer of SBI 🙂 .. I think this question needs more views and its better to post it on our forum : http://www.jagoinvestor.com/forum

  97. Rahul B says:

    Even Credit Cards balance payment can made using NEFT.
    Just wanted to bring this to your notice as this may be helpful to people.

    1. Rahul

      Thanks ! 🙂 . Any kind of loans (cc) can be paid through NEFT !

  98. Tarun says:

    I transferred a small amount from my ICICI bank saving account to my BOB loan account. The amount got transferred and reduced from the Principal amount. But on the following EMI due date, EMI deducted by bank is reduced by the amount I transferred through NEFT. Can anyone please explain me the reason?


    1. Tarun

      Can you put numbers and rephare the issue .

      1. Tarun says:

        My EMI is Rs. 30000 and it is payable on every 15th of the month. Just for experiment, I transferred Rs. 500 on 04/03/2012 to my BOB bank loan account through ICICI saving bank account through NEFT. My loan balance got reduced by Rs. 500 from 04/03/2012 (adjusted towards Principal)
        But today when I saw the EMI amount, it was Rs. 29500 (30000-500).
        Although the interest charged is calculated as per my reduced outstanding balances.


        1. Tarun

          I guess your BOB is assuming this Rs 500 as advance payment for EMI and not as prepayment . Thats the reason they deducted rest of EMI (29500) . Better ask for explaination from BOB now .. also see in comments section who else succeeded in making prepayment for his BOB loan account, i can connect you to him/her if required to know more on this .

          1. Tarun says:

            Thanks Manish.
            I posted a query on BOB customer care but they are not even aware that funds can be transferred to loan account via NEFT. They have told me that funds cannot be transferred to Loan account via NEFT. And even if I will ask in the branch, I will get the same reply for sure.
            I have gone through all the comments and Mr. Ankit has successfully transferred the amount to BOB account.

            1. Tarun

              I have connect you to ankit on email. I guess you should start a thread on our forum now : jagoinvestor.com/forum

            2. Tarun says:

              Thanks Manish…

  99. I have a Citibank Home Loan. I have tried to contact them multiple times regarding this, but have not got any clear response. Below is the email response that I finally got from them –
    Dear Mr. Tewari,

    This is with reference to your query dated February 07, 2012.

    We understand that you choose to make part payment towards your home loan account. We regret that simulated part payment details cannot be provided as the interest rates are highly volatile. However, we have provided the norms applicable for part payments for your reference.

    Part payments will be adjusted against the Principal outstanding of the loan. Part payment can be made for any amount greater than the Equated Monthly Instalment (EMI) amount.

    For online part payment, the part payment amount has to be a minimum of 3 times the EMI amount. Part payment can be made leaving a minimum of 12 EMIs payable in the loan. Pre-closure of loan will attract loan pre-closure charges.

    If a loan is pre-closed within 12 months from the date of making part payment, pre closure ( pre payment) charges will be applicable on the part-payment made considering the completion of entire 12 months and not the dates.

    Part payment amount can be sent as a demand draft to the below-mentioned address. The Draft is to be drawn in favour of “Citibank N.A. loan account number *****”. Citibank N.A Mail RoomNo.2, Club House RoadChennai 600 002 Please revert us for any further clarification.
    Thank you for accessing Citibank Online.

    They have set the limit high enough so that I cannot be met easily.

    Also, its been almost a year since I have been following up with them to change the ECS date from 01st of every month to 05th or later. They have clearly said that this cannot be done. I am yet to understand the reasoning behind this.

    Does anyone else have a experience to share ?


    1. Ashutosh

      Better discuss it on our forum for better answers and more experiences : https://www.jagoinvestor.com/forum/

  100. alisha says:

    I like the points mentioned about home loan but may be this link provide you more details http://www.dialabank.com

  101. Durga Prasad says:

    Hi Manish,

    I had education loan with SBI earlier and used to repay using this NEFT option.

    Durga Prasad.

    1. Durga

      but from which bank ? was is SBI to SBI ?

  102. Harsh says:

    Hi Manish,

    I have been doing such transfer from past 2 years or so, without visiting them single time after submitting documents for possession. I have my home loan account with SBI.

    Some banks gives overdraft facilities as well (SBI surely does) so if you wish you can withdraw pre-paid money later, if needed, and enjoy relaxation on interest amount for deposited time due to reduced outstanding.


    1. Good to know that .. some other readers have also confirmed this overdraft facility 🙂

  103. Ankit says:

    Yes. I have tried it with bank of baroda and its working.

    1. Ankit

      Thanks for confirming this 🙂

    2. Tarun says:

      Hi Ankit,
      Can you please tell me how exactly you have done this? Have you transferred the amount from some other Bank account to BOB loan account or something else? Plz elaborate a bit.


    3. Tejas says:

      Hi Ankit

      I have an Bank of Baroda home loan a/c do you think if i add the same to my citibank as an NEFT Payee..I should be able to make prepayment

      please reply at the earliest

      1. Tejas

        Yes, that should be possible , why dont you try it atleast .. in worst case it wont work , thats all !

  104. Learner11 says:

    I have taken car loan in 2011 summer in SBI bank. They opened a savings account along with the loan. There is also a separate Loan account number. I have added this load account number to my Citibank account as payee and i now pay my EMIs every month through NEFT transfer.

    1. thats great .. thanks for sharing that .. I guess you must be paying it through ECS and not manually each month ?

      1. Learner11 says:

        No, i do it manually. I check the availability of funds , adjust if needed and transfer before the EMI date.

        1. Learner11 says:

          Also for ECS i had to fill the ECS form and personally submit in the bank. This they informed me little later and after that i really never bothered to do that since i was managing it with the manual transfer.

          1. Priyanka says:

            Can you please let me know if you added the sbi loan account as savings or current account when you are adding as payee?

  105. Varun says:

    Anyone tried NEFT tranfer from HDFC bank Savings account to HDFC Home Loan account? I tried but not able to setup.

    1. Prashant says:

      I too tried, but not able to link my HDFC saving ac to HDFC Loan ac

  106. Tarun says:

    Has anyone tried this with bank of baroda?

    1. Tarun

      Are you holding BOB ? Better you try it .. nothing to loose ?

      1. Tarun says:

        Hi Manish,
        I tried to add my BOB loan account to my BOB saving account through BOB internet banking but it did not allow me to do so.
        I have added BOB loan account as third party transfer for NEFT to my ICICI bank account now and will try to transfer some amount to BOB loan account and will confirm.
        Thanks for this information.


  107. dr kishan says:

    Hi Manish
    Good and informative article. I too have availed this facility about 4 years back. this was for my car loan. I used to transfer money regularly from ICICI bank in one city to State bank of Patiala A/C in another city. In the end too I finished off the whole loan by the same method.

    Keep up ur good job
    dr kishan

    1. Thanks Dr Kishan 🙂 to inform about this .

  108. Rajendra says:

    Hello Manish,
    Adding further, Even the education loan repayment can be done online same way.
    I did it by adding my SBI loan account with SBI/ICICI saving account online.

    I remember I used to repay credit card bills by adding card numbers as saving account and transfer money online. This one I used 3 yrs back when visa credit card transfer option not there. I did it for ABNAMRO, ICICI, HSBC, HDFC credit cards hassle free.

    I think people should giv a try online before taking the hassle of approching bank branches for repayments. Loads of time cud be saved.

    Happy sharing !!

    1. Rajendra

      Thanks for adding your comment . your experience will help others

      1. Janardhan says:

        I think Axis bank reducing prepayment by not coperating NEFT facility. But definitely provided this option for recovery purpose during Interest rate hikes. Its horrible. And they never reduced interest rates where other banks are easily reduced when interest coming down. Axis cheating.

        1. Complain to Banking ombudsman on this .

  109. BSS says:

    If online payment is not possible you can always send a physical check to the bank branch by post. From USA you can send a regular USPS Post to India by paying just $1.76. It takes normally 14 days to reach India. I have used this option 2-3 times.

    1. Thanks for sharing that info 🙂

  110. gaurav says:

    Axis bank does not have this option.

    From them later in 2011:
    For part payment in home loan account prepayment charges are nil. You can visit any nearest ASC and submit cheque for part payment.
    Further, part payment amount should be more than two installments amount and can be accepted once in-between two installments date.
    After part payment we will reset the loan account with same EMI amount and reduction in tenure and process will require 10 working days.
    Cheque Favouring :”Axis Bank Ltd, Loan A/C No._______________ .”
    kindly be informed online transfer of funds to loan account is not available. Kindly confirm the same.

    1. Kapil says:

      Thanks Gaurav for sharing. After reading this article, I though of dropping an email to Axis, but, then I saw your comment.

    2. Yuts says:

      I can confirm what Gaurav told here. And its awful to think of any bank which still does not provide an online part payment option for their home loan! I had to go through a very traumatic experience.

      At the time of taking the loan, my only requirement was that there was an online option to do part payment (I was going out of the country). Not only did the Axis Bank representative lie that this could be done, he also said that the account information for the online account will be sent automatically.

      A month after the loan started, I got to know that both of these are false and I had been misled. Now that I was out of the country, I could not do anything. So, a word of advice to anyone opting for Axis Bank Loans: get everything in writing and double check every little thing they are promising.

      Once I knew that I had been duped, I did not want to fight and did the following:

      1. Called up Axis Bank Helpdesk to set up an online account. The information was sent by post in 2 weeks. The online account given by Axis Bank for a home loan is short of a comic tragedy, compared to what other banks to. The online account simply shows whats the loan amount and whats due (along with some gibberish which is of no use). There is no account statement, showing detailed transaction. For this, you need to email loans@axisbank.com giving details and they will email you a pdf statement (after 2-3 days). You need to do this everytime you want to check your loan statement.

      2. Any part payment request has to be submitted physically at the RAC branch of Axis Bank. In Bangalore, this is somewhere in Jayanagar. My brother did this request on behalf of me and needed the following things: (a) Scanned copy of my authorization letter stating that I am authorizing my brother to do part payment (b) Cheque (from my brother’s account) to the Bank Loan Account Number (c) Xerox of my identify prood and (d) Xerox of my brother’s identify proof. Once all of the above are submitted, the money will be reflected in 7 days time.

      1. Thanks for that update Yuts ! .. did this method of adding the loan account to bank work for you , whatever is explained in the article ?

        1. Vigyan says:

          some latest updates on Axis bank part payment using NEFT:


          1. Thanks for your comment Vigyan

  111. Kunal Roy says:

    Dear Manish

    I always follow your website, some really nice information comes up. Now relating to topic, I have a NRI home loan from HDFC ltd(Housing finance not bank). When i open my loan account on internet they have a option of pay online, but when i called up their customer support to check if i can make a pre payment online they advised me against doing that as they require another document as well stating if you want to reduce your tenure or EMI amount. Hence it is not advisable to pay online . If you have knowledge on this please share.


    1. Chander Goyal says:

      Hi Manish,

      Please share your view on the same, I got similar reply from employee of HDFC Ltd. on e-mail that I have to visit personally the branch for pre payment when I checked with them , if I can pre pay my home loan with NEFT transfer, Is it correct procedure to be followed by bank?

    2. Kunal

      I am not sure on this , but there should be a default option in this , I mean if you prepay then they should either decrease the tenure or decrease the EMI anyways .. one thing they will do . .

      I would say why not try prepaying 1,000 🙂 and see what happens

      1. Chennaivaasi says:


        I too have a housing loan with HDFC. Recently, I pre-paid a part of my housing loan in person through my mother. No, they do not have online option of for part prepayment of housing loan.

        In fact, they even revoked the facility of online payment of monthly EMIs (earlier they had with 100/- fee). Now, you have to pre-register to pay online even the EMIs which is allowed on an intermittent basis only.

        Irony is, you don’t have even get to see the updated principal based on the EMIs… the online site still shows the original Principal borrowed. this screws up my intuit money networth calculation…

        Looks like, they want to frustrate the borrower as much as possible in order to avoid pre-payment of principal :-((

        1. Chennaivaasi

          thanks for sharing that .. NO idea why such a big bank does like that .. they are called father of HOME LOANS .. anyways .. did you check all the options and still not able to do this ?

          1. Chennaivaasi says:

            Yes, did extensive research and effort on exploring options, nothing worked out…:-(

            1. Vivek says:

              Yes, I also did same with 10000 Rs. but after 90 days as well it is just showing there as -10000 (Negative) they have not adjusted it in principle. I called Customer Care as well even they dont know what will happen to that money. Just 1 suggestion from CC was visit your branch follow the queue 🙂 I am planing to move to another queue soon 🙂

            2. Vivek says:

              Forgot to mention, it was all about HDFC Ltd.

            3. Is it HDFC ltd ? I suggest talk to branch people !

        2. Atul says:

          Agree with you. Trapped with HDFC.

        3. Hari says:

          True – I checked with HDFC and they told that there are no options to link and pay through NEFT 🙁

        4. ankushya says:

          Yes Dear! I am agree with you that HDFC Ltd intentionally frustrate the borrower as much as possible in order to avoid pre-payment of principal

      2. Atul says:

        Hi Manish,

        I have home loan from HDFC and HDFC does not allow online prepayment. Secondly the prepayment amount has to be more than 2 EMIs. Strange but true.

        Good to hear that SBI and other nationalized banks allow this facility. Trapped with HDFC now.



      3. Chander Kant Goyal says:

        Hi Manish,

        Thank you very much for the wonderful post, after reading the post that NEFT transfer is possible for pre payments at so many loan providers, I chased HDFC LTD to provide the facilty, after exchanging few e-mails they provided me account details of one company account for wire transfer and I made payment to the account, and send details of payment to mentioned e-mail, in 4-5 days the payment got credited to my loan account. feeling sense of achievement and sense of freedom to be able to make payment towards prepayment sitting at comfort of home and not have to be in India for that

        1. Good to hear that :). now you can make the payments on the go and whenever the money is in your account !

        2. cp says:

          i would like to know the process of online payment of hdfc home loan.

        3. Hi Chander says:

          I have seen your post about paying HDFC home loan online. Please could you give me more details as how to do this. I am not in India and struggling big time to pre pay my home loan with HDFC.

          Thank you very much..

          1. See the article in detail

        4. Yogesh says:

          Hi chandra

          This is indeed a great achievement. Who did you interact with . I am very keen to know the process to achive that


        5. Rakesh Gaur says:

          Hi Chander Kant Goyal,

          Can you please share the process of HDFC online prepayment ?

          Rakesh Gaur

          1. Hi Rakesh

            As far as I know its very tough in case of HDFC LTD as its not bank . In some cities , they provide a account number where you can transfer the money and it gets adjusted as prepayment . Otherwise its very tough !

        6. Anup Khekare says:

          Dear Mr. Goyal,

          Thanks for your information. I am currently fighting HDFC to provide me such facitlity and I am facing a lot of resistance from them. Your reply is encouraging. It would be a great help if you can exchange the email you got from HDFC so I can show that email to HDFC in my city to make a case that this an be done and has been done. I will appreciate your help.


  112. Elbis says:

    Very informative article Manish.

    One relevant thing to keep in mind while making prepayments is the reducing nature of your loan. If it is daily reducing, you should prepay the moment you have free cash. If it is monthly reducing (which is the case in most of the loans), you can wait for the scheduled date when the bank calculates the interest and deploy the cash elsewhere.

  113. Sushil says:

    My home loan is from SBI and in case of SBI, even adding loan account as third party is not needed. because when we logon to internet banking of SBI it shows saving account as well as loan account. So while transferring it has option of ” Transfer to own account”. If we choose that option we can transfer money from saving to loan account..SO SIMPLE

    1. Pearlie says:

      Yes, SBI makes it really convenient! I agree they create a lot of fuss while taking a loan with them, but once the initial formalities are complete, SBI is really a piece of cake! As with Sushil, all I needed to do was make a Fund Transfer to my own account and transfer the amount. No hassle of even linking account or any such thing 🙂
      Kudos to SBI for making life so simple 🙂 I really don’t understand why people want to take a home loan with banks like ICICI!

  114. vassu says:


    Can you please help us to understand what is Max Gain Account? I have SBI Home loan with max gain account. Please tell us how to make good use of it.

  115. Abhinav Gulechha says:

    Hi Manish

    Thanks for your detailed and informative post.

    I will like to share my experience also. I have a SBI Max gain home loan. While obtaining a home loan itself, SBI opened an current account styled account with a Debit card and chq book. As per the product feature, whatever amount is deposited by me in the account, gets auto-adjusted against the principal o/s balance, for calculation of interest. What I usually do is that whatever amount I have on hand as surplus/ is a part of my contingency fund, I put in that account (effective opportunity gain is the rate of interest on home loan, in such case)

    All in all, I could link my ICICI Bank savings account very easily with my SBI Maxgain account.


    1. Ok great … So one more proof of this ..

      Some people are facing issue to connect their ICICI Loan with other bank accounts , looks like ICICI Bank does not allow it ,do you have any idea on this ?

  116. N sunilkumar says:


    I have homeloan with ICICI and loan payment is done thru OBC bank. I have checked with ICICI customer care for adding the loan A/C as third party. They have confirmed that I can add the Loan A/C as third party only if I was paying thru ICICI bank and not any other bank. Also customer care, has indicated, that prepayment is possible thru physically visitint the branch.

    Anybody having ICICI homeloan pls confirm if prepayment ids possible.

  117. Deivasigamani says:

    Though not related to home loans, you might be aware that credit card bills also can be paid through NEFT transfer. I feel this is lot more easier than paying through cheques or through bill desk payments as you dont want to go through the pain of filling ur credit card nos (sometimes thinking what if i had entered the wrong one in a hurry!). I am using this for the past 2-3 months and its very useful.

    I feel RBI is introducing lot of reforms in banking space but it is not percolating to the bottom level much or rather people are not using it?


    1. Deivasigamani

      I pay my ICICI credit card bill directly from ICICI bank internet account , havent added it from other bank , but i can see that it should be possible 🙂


      1. Deivasigamani says:

        I took a credit card from a different bank as i dont want to auto-link my accounts. Initially it was some what pain to pay this (as writing cheque and finding a drop box etc..) but now its super cool.. 🙂

          1. Anand says:

            I have been paying my credit card amounts via NEFT and it gets credited on the same day of transfer. It’s great.

            Plus I can schedule the NEFT payment from ICICI netbanking.

            So as soon as I get the credit card statement, I schedule the payment via NEFT one day before the due date. No more remembering of due dates.

            1. Anand

              Great .. good that you shared that .. I pay my icici credit card bill directly from internet banking itself . Most of the banks allow it from their portal itself .


            2. Amit says:

              I pay my Citibank cc bill via HDFC Bank’s net banking.NEFT…it is very convenient

    2. sethu says:

      DeivaSigamani – We studied at the same school and same college(if my memory is right) you are my immediate senior and good that i found you here…

      How should i reach you? its a long time…publishing contact details not allowed here….

      1. Deiva says:

        Can you try reaching me on fb – search for “deivasigamani soliappan”. I hope this works or else we can take help of Manish.

  118. Anil says:

    Hi Manish,

    I have car loan which taken 2 years back from SBI for a term of 3 years. I was repaying the EMIs through PDCs. As only 24 PDCs were given to the bank, I’ve received a communication from the bank asking me to fill up the ECS madate form & give 6 ‘blank’ signed cheques as security. When I visited SBI with 12 PDCs for the remaining tenure, they accepted only 1 cheque for Feb 2012 and asked me to go for ECS since RBI has made it mandatory and SBI has stopped accepting PDCs.

    Is there any directive from the RBI making ECS mandatory? Is it safe to give signed blank cheques to SBI? Can I have any confidence after parting signed blank cheques to a bank which can’t even print my name correctly in the letter addressed to me?

    1. Anil

      I dont think its still mandatory (not sure) , but this article gives some pointers http://articles.economictimes.indiatimes.com/2011-10-30/news/30338942_1_ecs-sponsor-banks-destination-bank

      However now a days most of the people pay their loans through ECS mandate only , its green and easy way .. if they are asking for PDC , I think it can be given if you keep the proofs of it and also what you can do is , give PDC and then direct your bank to NOT honour those cheuqe (give the cheque number)


      1. Anil says:

        Thanks Manish.

        Even I had thought about giving the blank PDC but directing my bank not to honour those cheques. 🙂

          1. Sandeep Sudhakaran says:

            Well, I took SBI car loan 16 mons back, and they linked the loan account to my then already existing savings acct. I was also asked to submit around 20 PDCs but they asked me to fill all the acc payee,future dates,and all the necessary stuffs in the cheque, thus I am worried of its misuse since its not signed blank cheques. Also, thru net banking I could see the account statements for the loan account with details like reducing interests by month, outstanding principle,etc which really is beneficial as I had never visited the branch since the loan got sanctioned, everything online!. I new third party transfer for pre-payment of loans is possible, but didnt felt to do. Reading your post, it is making me tempted to try out. Very informative post indeed and all the best for your work to educate all the people.

  119. Joseph says:

    What is your opinion on ‘home-saver’ type of accounts that are offered by SCB and others? You can park extra funds in the linked savings account, the interest due is subtracted from the EMI. In case you want to withdraw money, you can always do it.

    Would like to hear your opinion on this. Thank you,

    1. Joseph

      Will have to do some analysis on this .. But is there anything which is not looking right to you ?

      PS : read your flipkart article .. good one .. agree with you . I am also a loyal customer of Flipkart, even though they are not cheapest every time 🙂

    2. Hari says:


      Even SBI has similar scheme – MAXGAIN where the home loan will be considered as an overdraft account and deposits can be made to this account which will reduce the Interest amount. HSBC also has similar option.

      These schemes provide dual advantage – one the deposit gets the same rate as the loan & 2 -> the deposited amount can be withdrawn at anypoint giving an excellent liquidity. It is as good as prepaying but the customer can withdraw the prepaid amount at any point of time.


  120. Jassi says:

    Tried. Cant add as LIC is not a bank and has no IFSC code. :'(

    1. Prasoon says:

      Same case here. Tried adding LIC HF to ICICI/ HDFC/ SBI accounts – no success.

      1. Nilesh says:

        Dear Manish

        First of all thanks again for starting an excellent discussion,
        online transfer for loan pre-payment will save so much time and effort for working individuals who cannot afford to run after home loan companies even to repay their loan. Myself i am currently out of country and looking for mechanism to pre-pay my homeloan with LIC housing finance…it would be great if we get solution for this…alternately i have kept 2 signed cheques with my freind to drop into their office…but the above mentioned option if works out would be the best for me…

        1. Shaleen Mathur says:

          But dear members all banks/HFC insist that prepayment should be from own sources (salary/savings) & not through another loan, otherwise prepayment penalty will be imposed especially for customers like me with fixed rate of interest. So any prepayment via NEFT without informing LICHFL should attract penalty. Correct me if I am wrong.

          1. Lalitha says:

            Hi, Can we make prepayments to LICHFL through ICICI ..does it work ..also do we need to inform LIC HFL ?

            1. I think that would be a bit tough . Because LICHFL is not a bank and from what I know bank-> bank transfer works !

  121. Jassi says:

    I have taken home loan from LIC housing finance. I dont think I can do NEFT payments for the same anytime online, as LIC is not a bank.
    Is there any way to do this, other than going physically and giving cheques?


    1. Jassi

      Yea that can be an issue .. however you must have a loan account number , try adding it as third party atleast. . see if it gets added or not .. Mostly it should fail, but atleast try and see what happens , if it gets added ,then you can try to make a prepayment of Rs 100 to test

  122. Ashish says:

    A very good information indeed.
    It is always helpful to link loan account via netbanking. Even small amount pre-paid multiple times a year can save a lot in ling run.

    Also – a customer should try to negotiate the removal of pre-payment charges. In some cases banks do remove it – even though they might be present in the initial documents.

    Additional point – linkages of account in the same bank. Earlier I have heard stories where the credit card amount was auto deducted from the linked savings account. Even when the cardholders were in need of money and withhold the credit card payment till next month. So read the fine print carefully before starting the auto deduct facility.


    1. Ashish says:

      Correction “Even when the cardholders were in need of money and WANTED TO withhold the credit card payment till next month.”

    2. Thanks for your views Ashish

      I agree that it has convinience factor but along with that some fine prints are there which one should be aware of !


  123. Dhaval says:

    Hi Manish,

    I have been using this option in SBI since 2 years. It is indeed very useful.


    1. Thanks for confirming Dhaval

      Can you give more info on this ? Is your bank and loan account both into same SBI bank ? or different bank ? Are you aware if its get ugly if one has loan and bank account in different banks


      1. Dhaval says:

        Hi Manish,

        I have loan account in SBI and i am transferring from HDFC. One important thing is , one has to select account type “Overdraft” and then you go.


        1. Dhaval

          You mean at the time when we have to select “type of account” , that has to be choosen as “Overdraft” , right ?

          1. Pearlie says:

            Hi Manish,
            My loan account in SBI shows as an OD account. I am yet to try transferring to my loan account though. Both my SB and Loan accounts are with SBI. Will be sure to try it.
            Can you please let me know how this amount will affect the interest paid? I mean, will there be a difference between the interest paid without such prepayments and the interest paid with prepayments? And if the interest amount will decrease, any idea how I can check this?

            1. Elbis says:

              The extra prepayment reduces your outstanding principal. You have two options after this:
              – Reduce the tenure and keep the same emi.
              – Keep the same tenure and reduce the emi.

              In both the cases, your interest goes down since you don’t need to pay any interest on the amount that you paid in advanc.e

            2. Pearlie

              When you pay EMI , it repays your principle and interest , but when you PREPAY , then it goes towards your loan outstanding (principle) , hence brining down your interest in long run , which is better


            3. Pearlie

              When you pay EMI , it repays your principle and interest , but when you PREPAY , then it goes towards your loan outstanding (principle) , hence brining down your interest in long run , which is better


            4. Pearlie says:

              Thanks Elbis, Manish 🙂
              Really appreciate your quick response and for providing me with additional incentive to prepay my loan!

            5. Mohammed Abdul Kareem says:

              Hi Manish, I have come acrossed your suggestions and I tried to link my HDFC Ltd Loan A/C with my SBI and SBT SB A/C, but it is displaying only HDFC Bank Ltd for adding bank name and not HDFC Ltd. There is no IFSC code for that. Could you pl help me in how to connect my HDFC Ltd Loan A/C with my SBT or SBI net banking for prepayment? Thanks.

            6. Thats tough to find out with less time . I will get back on this .

      2. Saurabh says:

        Hi Manish,

        I have done the NEFT from ICICI for my SBI Home loan.
        It works 🙂

          1. Sundar says:

            when adding SBI Housing loan account to my ICICI account for NEFT , what should i select in the account type drop down?

    2. pd123 says:

      Hi Dhaval,

      I have been paying my EMIs for SBI loan through online transfer since last year.
      I have not yet tried to pay an amount greater than my EMI, which I am planning to do now.

      But I do not see any option like ‘Overdraft’ when I try to add this account. Note that I am trying to transfer from a Citibank account. It has only two options Savings and Current for account type.

      Do you happen to know if the ‘Overdraft’ type is a must for transferring extra amount? Or can I just transfer this extra amount as I have been transferring the EMIs till now and it should be enough?

      1. Priyanka says:

        I want to transfer money online from citibank savings account to SBI house loan account. Can you tell me the procedure how to add sbi house loan account in citibank payee list? It has only two options like Savings and Current for account type. Under which type sbi loan account will fall?

  124. Ashwin says:

    I have a homeloan and savings account with ICICI. I tried to add the HL account as a 3rd party account, seems ICICI currently does not allow this. Tried to add it as a ICICI Bank account, but the problem is with the LOAN account number failing validation. Please let me know, if someone has managed this with ICICI Bank.

    1. Ashwin

      Sadly .. i guess ICICI has issue with this, even the guy whom i was helping in this , he also had ICICI bank loan and this was not possible with him.

    2. yogesh says:

      request on ICICI netbanking(thru U R saving account) website for adding Loan account/link LA to your regular savings account.This will do.I did.

      1. sudhir says:


        In my case, my ICICI NRE account and ICICI Home Loan accounts are linked and appear under the same user id, when i log in.

        However, how do i transfer from my NRE account to the Home Loan account?

        Also, i do not think ICICI displays the current balance on home loan dynamically. All that they show is a full tenure chart showing monthly split of the Prinicipal and Interest and pending loan amount, nased on EMI basis. So, in this case, do we have to call up ICICI to check, whether the prepayment (if made from a different bank) has been accepted etc.?

        Thanks & Regards,

    3. Ashwin

      Look at yogesh suggestion and act on it , let us know if that worked or not ?

      1. Arun says:

        I’ve added PNB home loan to ICICI savings account online and prepay using NEFT. ICICI website has a problem in validation as they don’t accept account numbers with alphabets in them. To add my PNB homeloan account, which had alphabets, I had written an email. They said initially that they just can’t do it. But after some days, when I tried they seem to have disabled the validation JavaScript for NEFT transactions. Looks like they still do the validation for intra ICICI transfers.

      2. Rahul says:

        Hi Manish,

        Both my savings and loan account with ICICI are already linked, but I still cannot do a part payment. This is a big issue with ICICI bank. I have contacted them through Facebook/email as well, but still awaiting any response from them.

        Yogesh – How do we go about after linking the accounts, I mean how do we do the payment to the loan account from savings account. I tried doing it, but it does not let me select my loan account to transfer the amount.

        1. sudhir says:


          Did you manage to get your issue sorted. Even I’m facing the same problem.

          Apparently ICICI online banking does not allow you to add the 16 character alphanumeric loan account number.

          Any suggestions here please?

          Thanks & Regards,

    4. Vishal says:

      I also hava a homeloan & saving account with ICICI bank and last saturday I visited a branch & enquired about the same. I got the reply that you can’t do online ransfer from saving to homeloan account and have to visit branch every time for pre partpayment(s).
      One more thing I come to know that we can’t do partpayment less than the regular EMI. ie, if a person is paying Rs 25,000 EMI then the partpayment amount should be Rs. 25,001 or more, we can’t do partpayment less than or equal to Rs. 25,000.

      1. That may be very specific rule of ICICI . There is no such requirements from all the banks

  125. Rohit Verma says:

    Dear Manish,

    Excellent information as usual. However, most of the banks charge an avg of 4% as pre-payment charges. If I pay some spare funds apart from my regular EMI amount, month on month, how are they gonna calculate pre-payment charges ?
    Will it be on every extra installment I make or on the total amount I have paid till the end apart of the EMI’s ?

    1. Srinivas says:

      As such prepayment is not like automatic fund transfer in most banks.

      As most bank still charge prepayment penalty(even after RBI advise and few banks nullified it), it is required that you intimate them first before hand and find out the penalty amount. then one can make a transfer for the total amount(Prepayment + Penalty).

      This is the process i follow for prepayment in mu ING Vysya home loan account.

      As regards how the amount is treated, normally banks treat it as principal paid after the current instalment period. One can see the benefit from the next cycle onwards.

      Thanks Manish, for the useful input.

    2. Rohit

      But those prepayment penalty is more for a lumpsum payment , right ? Most of the banks allow upto a limit each month like upto 1 month EMI per month , so if your EMI is 30k per month and you prepay additional 30K per month , then its allowed without any penalty amount . Is it not the case with your bank ? or my understanding is not right ?


      1. Indeed. Actually Banks have no limits (at least with IOB and SBI) on the monthly pre-payment. The interest is calculated on reducing basis so any amount excess of the planned EMI is accepted and the principal reduces so the future interest reduces as well.

  126. Avisek Das says:

    Hi All,
    I have opted for home loan from IDBI bank.They have a simple procedure .Let me share that information here. First of all they told me to open a savings a/c in IDBI bank . latter they connected my loan a/c with the newly open savings a/c.Now i am transferring the requires amount to the IDBI savings a/c from my another a/c through Net-banking.And IDBI is deducting the required EMI every month’s 10th day. So no going to bank any more. Saving the time and effort. Just thought to share the info with all of u.


    1. Avisek

      Thanks for sharing that information with us 🙂 . It will really be helpful for everyone and a proof of this tip .


      1. Mahesh says:

        I had instance where I was paying to my SB a/c just to get a shock, after couple of months, that my SB a/c was freezed due to no transactions !!!.. I was just having online debit & credit…..when enquired was told person who frozed went on leave & didn’t knew about this standing instructions….!!!??? 3 months no entry to loan account & money was lying in SB account…They didn’t even inform me…Since then i pay directly to my loan account via NEFT

        1. Mahesh

          thats scray .. the problem of this can be many .. your EMI’s might not reach the bank and this can effectively bring your CIBIL score down ! .. there can be penalties !


    2. KK Babu says:

      Dear Mr Avisek Das
      Its good to know about linking of savings account with Loan A/c. Its good that you are using the same for regular monthly EMI.
      However, here the point of discussion is not about paying regular EMI. Mr. Manish is discussing about PRE-PAYMENT or PART-PAYMENT of Loan amount.
      Pl. tell us are you using the same facility for any PRE-PAYMENT of loan amount?
      Regards, KK Babu

      1. KK Babu

        Actually the articles is more on how to connect the accounts so that you can make the prepayments or even regular payments .

      2. Vidyanand Nayak says:

        Hi All,

        Please make a note, though IDBI banks has a ECS facility for your regular EMI payment, it do not allow the Pre-Payment/Part Payment if you plan to do so.

        I have my home loan account+saving account both from IDBI bank linked up, but sad to understand they do not allow the Online Pre-payment/part payment facility neither by Third Party Transfer or NEFT.One has to visit the respective IDBI branch in person for completing the procedure for pre/part payment.
        Regards,Vidyanand Nayak

        1. Thanks for that information !

        2. swaroop shanbhag says:

          I second to what Mr Vidyanand Nayak has said.
          I was also told by IDBI that i need to visit the branch to pre-pay the loan and online option is not available!


          1. It might be the case with some banks

        3. Rinku says:

          This is not correct, atleast anymore , cause I have made prepayment to my IDBI home loan account through NEFT last month i.e. May 2013. And the same is reflected to my HL outstanding as well. Although I was required to fill up a pre-payment form sign it and email the scanned copy of the form to bank branch\officials.

          1. rajagopal panigrahi says:

            Dear Mr.Rinku,
            Thanks for your post.
            I have got a loan account with IDBI bank.
            However, I am staying out of India, but, want to make part payment time to time, which is not possible for me as the bank is asking for visiting the branch.
            Can you please guide me how to go about it?

            Thanks in advance

            1. Did you try doing what is suggested in the article , because with IDBI bank it should be possible !

            2. jasmie says:

              Pre-payment is possible in IDBI online account. U have to transfer the amount(it should be min of 50000 rs) to ur IDBI savings account and send a mail to customercare stating to debit from savings acc no and credit to loan acc no.

              And we have options to reduce the rate of interest to base rate by paying 1% of processing charges. becoz of this large no of tenure gets reduced in idbi..

            3. Thanks for that info Jasmie !

        4. Sparks says:

          Beware of IDBI associates. I had called up IDBI bangalore indranagar branch to checkout the options on how to prepay staying abroad. First he said about the Saving Account which I ruled out. Second he proposed to transfer the money to a unknown Account Number 81337000010040 and asked me to send an email to move the funds to my home loan account. When I asked him what this account is, he wasn’t able to provide a proper response other than saying “its IDBI account”. When I said I don’t trust this unknown a/c number, he said that I could also transfer to the money directly to my home loan account!! I was shocked. Unfortunately, i couldn’t find any grievance cell where i could report this.

          1. Gaurav says:


            I’ve home loan from IDBI bank and I’m staying outside India. For NEFT transfer what are the options? what need to be done?

            – Gaurav

            1. HI Gaurav

              Not all banks provide this facility . I suggest you try out a NEFT transaction to from your saving bank to -> IDBI loan accounts . It should work , else there is no facility from IDBI side on this !

    3. Rahul says:

      Hi Avisek,

      I too have a savings and home loan from IDBI, but i am unable to transfer funds from my idbi savings to home loan a/c. I spoke to customer care about that, and they said transfer to home loan can only be done through NEFT.

      Could you please share some more details with me about this ? I think customer care guys are not guiding me right.

    4. Aniket Joshi says:

      I did the same thing.
      Also IDBI says that only 4 Pre-payment in 1 FY. But I have made number of NEFT part prepayment and those are successful transactions.

      When I went to IDBI for foreclosure , I had ICICI cheque book as I was not able to find my IDBI CB, so they asked for 6 months bank statement if I was using other bank for closure,
      I just then did NEFT transaction for entire closure amount and then the closure amount was zero when I approached the bank to submit the form.
      Obviously bank emp got confused but just provided the form without any cheque of statement and got the documents.

      1. gaurav says:

        Hi Aniket,

        I also want to close my Home Loan account with IDBI. Can you please let me know what are the steps you followed and things to keep in mind. I am currently staying outside of India.

        Gaurav Vaish

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