Pre payment of SBI car loan

POSTED BY shivendranamdeo ON September 20, 2013 10:03 am COMMENTS (4)

Hi,

I have taken Rs. 3,50,000 Car Loan in December 2011 for 7 years with EMI of Rs. 6,039 form State Bank of India.  now current outstanding loan is around Rs. 285000. Now i want to pre payment about 100000 and also want to increase my emi, is it possible? After prepayment of above said amount and emi increase by 2000 i.e. 8000, what will be the outstanding amount and tenure at the same time

Please let me know your thoughts.

Thanks

Shivendra

4 replies on this article “Pre payment of SBI car loan”

  1. vijay says:

    Hi Friend,

    I want to close my car loan through prepayment, I purchased the car in dec, 2014 and taken 410000 from SBI. Now in august 2016, the loan pending in 340000 approax, so I want to prepay. what is the process, can I straight away pay in bulk (let say Rs.50000 per month extra beside regular EMI), or should I need to go to bank to prepay? and If I can pay through internet banking, then how will I get to know, how much is the principle pending / tenure pending.

    1. There is no good system of prepaying online for car loan as far as I know . Its better to go to branch and tell them that you want to pre pay loan by X amount and pay X amount. This way your loan outstanding will come down by that margin

      Manish

  2. sindhuja9 says:

    Yes, you can prepay your SBI car loan. There is no penalty on prepayment of SBI car loan. On prepaying Rs.1,00,000 the outstanding amount will be Rs.1,85,000 By maintaining the EMI at Rs.6,000 the tenor will be 2and a half yrs. (approx.) The overall tenor of your loan will reduce by 1 yr. 8 months (approx.) from the original 7 yrs. Usually, only a reduction in tenure is allowed the EMI remaining the same. By increasing the EMI by Rs.2,000 to Rs.8,000 (from Rs.6,000) the tenor will be 2yrs.(approx.) The overall tenor of your loan will reduce by 2 yrs. 2 months (approx.)

  3. ashalanshu says:

    Dear Shivendra, the prepayment of 1L Rs. ‘ll bring down your loan amount from 2.85L to 1.85L Rs. Increasing your SIP from 6K to 8K ‘ll close your loan in 27 months from here on wards.

    Thanks

    Ashal

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