Prepayment of Car loan and its affect on CIBIL Score ?

POSTED BY [email protected] ON January 31, 2014 3:02 pm COMMENTS (3)

I have taken a car loan for a tenure of 3 years  in May 2012 for a sum of Rs.3,25,000/- from Axis Bank. Current outstanding amount is Rs. 1,45,778/- for which i would like to close it.

Please suggest if pre-closure/pre-payment affects my CIBIL score.  Also will there be a pre-closure of pre-payment charges for Axis bank car loan after 1 year of EMI payment?

 

3 replies on this article “Prepayment of Car loan and its affect on CIBIL Score ?”

  1. Credexpert says:

    Dear Praveen,

    The pre payment of your car loan should not have an impact on your credit score. For the pre payment charges applicable by your bank, it would be best if the same is clarified with them.

    Regards,
    Credexpert
    http://www.credexpert.in

  2. kramkiran says:

    Hi Praveen, pre closure shouldn’t effect your CIBIL score at all.

    Pre-closer charges depends upon the your Bank and what’s mentioned in agreement.

  3. ashalanshu says:

    Dear Praveen, why are you not investing the money elsewhere for long term to earn better return. In your case, the loan term was 36 months only and out of which 20-21 months are already over, hence saving in interest for you ‘ll be very less. in my personal opinion, please continue with loan and invest the saved amount for your retirement or kid’s education.

    Thanks

    Ashal

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