Prepayment of car loan

POSTED BY Vyasang ON June 16, 2013 9:06 pm COMMENTS (3)

I have taken a car loan from SBI for a duration of 7 years. I want to clear this loan as early as possible.

Can I increase the EMI?

Does the bank allow this without any change in conditions, like increasing interest rate or  levying a penalty?

Plz guide.

3 replies on this article “Prepayment of car loan”

  1. Ashal Jauhari says:
    June 16, 2013 at 9:29 pm

    Dear V yasang, why did you not opted the lower duration i.e. 4-5Y in advance? Please visit the SBI branch & you ‘ll be asked to do the required paper work. Interest rate ‘ll remain same. Regarding any processing fee or penalty, only SBI people can tell.

    Thanks

    Ashal

    Reply
    1. ajay says:
      June 17, 2013 at 3:49 pm

      Dear yasang,

      If you go for prepayment SBI will not fine anything,

      No charges on preclosure at all.Three is no processing fee and penalty.

      but why you want to close it.Do one thing take a loan against your LIC policy at 9% ROI from LIC and do the prepayemnt to SBI.

      Pay less interest at reduced duration

      Reply
      1. Vyasang says:
        June 18, 2013 at 3:29 pm

        Ajay, I welcome your suggestion.

        Reply

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