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Home loan online PrePayment

Last updated: August 3 2017
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  • Home loan online PrePayment

    Hi All

    I have home load running with HDFC bank. Now when I am trying to make the some part-prepayment against my standing principle amount ,for that Bank guys are asking me to visit the bank and submit a application(stating the reason for part pre payement) a bank statement and the cheque/DD.

    Can anyone please confirm me if it really required to visit the branch for it. Can't we do that online, I have seen some comments on non Banking sites wherein people have added the loan account to thr Bank and made the transaction. However I am not sure if we can really do it.

    As I am currently out of town and can't visit the Bank for it. Any assistance on this issue is really appreciated.

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  • #2

    #2

    Re : Home loan online PrePayment

    Hi,

    I am not sure about HDFC. But, I know that few banks levy pre-payment penalty if pre-payment is not done from "own" fund. They need bank statement to know source of fund to confirm that it has come from your own earnings.. This could be the reason.

    You can talk to them and ask if you can send scanned copy of application along with bank statement by email. Once they approve, if you can transfer the amount online. I think bank like HDFC will have some process to do it online (w/o visiting the branch)

    If visiting to branch is a must and you are in India then ask them if you can visit any HDFC home loan branch. At least this option will be there for sure.

    Comment

    • #3

      #3

      Re : Home loan online PrePayment

      Originally posted by maky2413 View Post
      Hi All

      I have home load running with HDFC bank. Now when I am trying to make the some part-prepayment against my standing principle amount ,for that Bank guys are asking me to visit the bank and submit a application(stating the reason for part pre payement) a bank statement and the cheque/DD.

      Can anyone please confirm me if it really required to visit the branch for it. Can't we do that online, I have seen some comments on non Banking sites wherein people have added the loan account to thr Bank and made the transaction. However I am not sure if we can really do it.

      As I am currently out of town and can't visit the Bank for it. Any assistance on this issue is really appreciated.

      -
      RBI has instructed Banks to waive off the penalty on fully Floating Home loans.

      The information requested by the bank is basically a legacy process which has not been changed. You obviously would need to send a request to prepay to complete the legal documentation (maybe a scanned copy followed by a original) and the actual payment. The bank statement is a hold over from the process when they were ensuring that the repayment was out of your own funds AND SHOULD NOT BE INSISTED ON NOW. The bank statement is a personal document and I am extremely cautious about sharing it if not required.

      Suggest you tell HDFC to process on the basis of your scanned application (original to be couriered later) followed by a NEFT and in case they refuse..you will complain to the RBI Banking Ombudsman. Follow this up with a mail to HDFC Bank reiterating this.

      The RBI Ombudsman mention will get the call centre to escalate the issue internally to the Senior Manager who can actually take a decision rather than mindlessly parrot "This is our policy". I have dealt with the bank before and have a lot of respect for them. It is just that you have to reach the right person in the Bank.

      Remember it takes one person to take a stand to make the change for everyone..You could be the one..
      Last edited June 18 2014, 01:10 PM.
      Life is what happens when you are making other plans. Enjoy it

      Comment

      • #4

        #4

        Re : Home loan online PrePayment

        Originally posted by Que Sera View Post
        RBI has instructed Banks to waive off the penalty on fully Floating Home loans.

        The information requested by the bank is basically a legacy process which has not been changed. You obviously would need to send a request to prepay to complete the legal documentation (maybe a scanned copy followed by a original) and the actual payment. The bank statement is a hold over from the process when they were ensuring that the repayment was out of your own funds AND SHOULD NOT BE INSISTED ON NOW. The bank statement is a personal document and I am extremely cautious about sharing it if not required.

        Suggest you tell HDFC to process on the basis of your scanned application (original to be couriered later) followed by a NEFT and in case they refuse..you will complain to the RBI Banking Ombudsman. Follow this up with a mail to HDFC Bank reiterating this.

        The RBI Ombudsman mention will get the call centre to escalate the issue internally to the Senior Manager who can actually take a decision rather than mindlessly parrot "This is our policy". I have dealt with the bank before and have a lot of respect for them. It is just that you have to reach the right person in the Bank.

        Remember it takes one person to take a stand to make the change for everyone..You could be the one..

        HDFC Bank does NOT give Home Loan. It sources Home loans for its promoter HDFC, and thereafter a part of the Home Loan is given back to HDFC bank through securitization / PTC.

        HDFC is governed by National Housing Bank (NHB) and not by RBI.

        Please visit NHB site and see circular nos 43, 48 and 51 on 'Pre-payment penalty on pre-closure of housing loans'. NHB

        As per NHB norms, floating rate home loans can be pre-closed using any source of funds. Fixed rate loans can be pre-closed using own sources (i.e. - other than borrowing from bank / HFC / NBFC / FI). Dual rate / Semi fixed loans are to be assessed if they are in the fixed rate or floating rate phase, and dealt with accordingly.

        If your home laon has a fixed rate currently, then Bank may be justified in asking for the documents.

        However if it in floating rate, and you are unable to visit the Bank personally, write an email from registered id to them requesting them to adjust the remittance against the loan, and giving them the hard-copy request and documents later when you are back in town.

        Comment

        • #5

          #5

          Re : Home loan online PrePayment

          Thank you for the clarification. I was aware that the home loans are sourced from the institution but was not clear if the final loan agreement is between the borrower and the bank or the institution.
          Life is what happens when you are making other plans. Enjoy it

          Comment

          • #6

            #6

            Re : Home loan online PrePayment

            Originally posted by GeeKaay View Post
            HDFC Bank does NOT give Home Loan. It sources Home loans for its promoter HDFC, and thereafter a part of the Home Loan is given back to HDFC bank through securitization / PTC.

            HDFC is governed by National Housing Bank (NHB) and not by RBI.

            Please visit NHB site and see circular nos 43, 48 and 51 on 'Pre-payment penalty on pre-closure of housing loans'. NHB

            As per NHB norms, floating rate home loans can be pre-closed using any source of funds. Fixed rate loans can be pre-closed using own sources (i.e. - other than borrowing from bank / HFC / NBFC / FI). Dual rate / Semi fixed loans are to be assessed if they are in the fixed rate or floating rate phase, and dealt with accordingly.

            If your home laon has a fixed rate currently, then Bank may be justified in asking for the documents.

            However if it in floating rate, and you are unable to visit the Bank personally, write an email from registered id to them requesting them to adjust the remittance against the loan, and giving them the hard-copy request and documents later when you are back in town.
            Very useful link indeed., .thanks

            Comment

            • #7

              #7

              Re : Home loan online PrePayment

              hdfc ltd worst with hidden clause , i am a sufferer

              Comment

              • #8

                #8

                Re : Home loan online PrePayment

                Originally posted by sherry1 View Post
                hdfc ltd worst with hidden clause , i am a sufferer
                Hey.. Can you elaborate? I have just taken loan frm them n wld like to know what issues i can face in future.

                Comment

                • #9

                  #9

                  Re : Home loan online PrePayment

                  Hi all, I just visited pnb housing for partial prepayment of my home loan. But they refused to take my cheque saying thaat it will be better if I give them the cheque after 10th which is my EMI date. When I asked the reason they said that it will be better flr you without giving any satisfactory reason.Can anyone tell me what is the logic behind this??

                  Comment

                  • #10

                    #10

                    Re : Home loan online PrePayment

                    Does PNB ( not PNBHF ) have option to pay prepayment via online method ? Reason why I want to check on this is that I will be getting home loan from PNB for an X amount for 15 years. The EMI will be Y amount. However depending on my financial capacity I might be able to pay Y+Z amount every month towards EMI. Now the amount Z is variable and I would want to have control over that amount depending on other requirements like shopping, vacation, gifts, celebration, festival, etc.

                    So, I would like to see if every month I can pay it online, without having to visit the bank every month.

                    Comment

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