HDFC Home Loan - Query & Discussion

[saver-user]

So, my loan got sanctioned with HDFC disbursement is pending. they are asking me to take a insurance from them. that is a concern but not the main one. my main concern is i have read some threads saying HDFC during contruction even after paying full emi (not selecting pre emi) doesnt reduce tenure??? like howww. 2 questions - insurance and the full emi tenure. someone had with experience HDFC?

 

[saver-user]

So guys i have taken a home loan for 10 years monthly emi 74K. since i am building a apartment my. i will also receive monthly rental income. I can easily prepay extra 70-80k (every month) on top of 74k emi every month my question is which option is better to save most interest??? my head hurts lmao.

1) prepay every month (after 6 months obvio due to the rule)?
2) prepay every year
3) put money (74k every month) in a flexible fd or savings account and get 5-6% interest on it every year and prepay once remaining amount and savings balance are equal (expected to happen between 2029 and 2030 first half)

Info - Loan is with HDFC and interest is 8.75%


(MY MAIN FOCUS ISS TO SAVE AS MUCH OF INTEREST AS POSSIBLE)


thanks guys for the help.. one small question like hdfc has any rules against this or something? i mean they lose money if i do this dont they have wierd rules against it? like fees or something?

 

[Mpautobe]

So guys i have taken a home loan for 10 years monthly emi 74K. since i am building a apartment my. i will also receive monthly rental income. I can easily prepay extra 70-80k (every month) on top of 74k emi every month my question is which option is better to save most interest??? my head hurts lmao.

1) prepay every month (after 6 months obvio due to the rule)?
2) prepay every year
3) put money (74k every month) in a flexible fd or savings account and get 5-6% interest on it every year and prepay once remaining amount and savings balance are equal (expected to happen between 2029 and 2030 first half)

Info - Loan is with HDFC and interest is 8.75%


(MY MAIN FOCUS ISS TO SAVE AS MUCH OF INTEREST AS POSSIBLE)

Initial emi payments are predominantly on interest.. The monthy additional payment over and above EMI will reduce ur principal..
So instead of getting FD interest to pay later, paying principal partialy will help much to reduce ur interest% portion in EMI..
At a point of time or an EMI month the interest portion on ur EMI will reduce. At that time u can plan other ways to pay it..

 

[oshan]

just collect 1.5L and pay bimonthly, with each payment get EMI reduced
you can upto 25% of principal a year online too, so no need to visit branch

 

[prankster]

Yes, like others suggested, interest component is heavy in the first few years, so prepayment in the initial years will help you save a ton of money.

 

[manideep77]

Early prepayment is always the best in most of the cases. One case maybe where you can invest that amount in a instrument that generated higher returns than home loan interest. So in your monthly prepayment is best option.

 

[Dhudu]

So guys i have taken a home loan for 10 years monthly emi 74K. since i am building a apartment my. i will also receive monthly rental income. I can easily prepay extra 70-80k (every month) on top of 74k emi every month my question is which option is better to save most interest??? my head hurts lmao.

1) prepay every month (after 6 months obvio due to the rule)?
2) prepay every year
3) put money (74k every month) in a flexible fd or savings account and get 5-6% interest on it every year and prepay once remaining amount and savings balance are equal (expected to happen between 2029 and 2030 first half)

Info - Loan is with HDFC and interest is 8.75%


(MY MAIN FOCUS ISS TO SAVE AS MUCH OF INTEREST AS POSSIBLE)

Ask ChatGPT, I recently did some combinations of LIC loan interest and principal repayment combinations and it suggested good optimizations after I tried several combination. First do give it all your inputs...

 

[saver-user]

thanks guys for the help.. one small question like hdfc has any rules against this or something? i mean they lose money if i do this dont they have wierd rules against it? like fees or something?

 

[manideep77]

thanks guys for the help.. one small question like hdfc has any rules against this or something? i mean they lose money if i do this dont they have wierd rules against it? like fees or something?

You have confirm with the bank about the rules regarding prepayment. Some banks will have charges on prepayment of loans. Also with prepayment confirm with bank that they are going to reduce the no of EMI's and not EMI amount.

 

[Trust Me]

HDFC didn't charge a pre-payment penalty when I had repaid my housing loan years back. Get it clarified with them if it's still the case.

IIRC, each additional prepayment on top of the EMI was reduced from the principal without any reduction in the EMI. If you can make sure of that, prepay the maximum amount possible each month and your loan will vanish quickly with the least amount paid in interest.
.

 

[saver-user]

turns out i am facing a small issue - my estimates is i will be able to prepay more than 10-13L yearly and my loan is only 60L so due to 25% prepayment rule. will be reached very very fast. but ahh well we cant have everything..... gotta live with it

 

[MURUGESH]

in HDFC after 6 months you can request for raise in EMI as well, just raise a request in Online they will increase it. they will ideally increase upto double of current EMI provided your ECS /NACH is having more limit than that.

 

[Aniket Sharma]

Hi, we had gone through tough times and had taken a HL from hdfc of 30 lacs and 15 lacs on top of it,

Anyhow the time passed and I successfully cleared 15 lacs top up and 7 lacs got reduced from 7 years with a 26k emi for HL.

Now in last month I also pre-payed 7 lacs in HL and reduced the emi to 17.5k, now we have a debt only of 15 lacs of HL.

So, I want to close that HL asap by taking Personal Loan/Jumbo Loan/etc.

Whichever will be effective/better to pay the HL faster and get the paper's back from hdfc.

I need suggestion from you all.

Thanks in Advance.

 

[prankster]

Hi, we had gone through tough times and had taken a HL from hdfc of 30 lacs and 15 lacs on top of it,

Anyhow the time passed and I successfully cleared 15 lacs top up and 7 lacs got reduced from 7 years with a 26k emi for HL.

Now in last month I also pre-payed 7 lacs in HL and reduced the emi to 17.5k, now we have a debt only of 15 lacs of HL.

So, I want to close that HL asap by taking Personal Loan/Jumbo Loan/etc.

Whichever will be effective/better to pay the HL faster and get the paper's back from hdfc.

I need suggestion from you all.

Thanks in Advance.

Why do you want to take PL to close HL? HL is the cheapest loan out there. And since most of the amount is paid already, the interest component would already be very less. Talk to HDFC and see if you can get the interest rate revised?

 

[Aniket Sharma]

Why do you want to take PL to close HL? HL is the cheapest loan out there. And since most of the amount is paid already, the interest component would already be very less. Talk to HDFC and see if you can get the interest rate revised?

I want to get my papers asap, i can open an OD as its pre-approved on hdfc current account.
and there are some pre-approved offers for PL and Jumbo loan on credit card too,.

Its not the interest part only bro, It looks like its the cheapest but when you calculate the final amount with other loans, it comes out to be the most highest on HL.

I asked and they said since I made a pre-payment the offer can't be availed.

And also the worst part am getting in HL is no transparency, they always have there online system damaged and even not updated properly and we can't track how much on every months the principal amount is getting reduced, I always have to go branch and enquire for statement and always they have some excuses for deductions etc and even the HL is not on fixed rate that is also confusing and jumps the end date of HL on every 6 month to 2-3 years. Fcuk these problems.

We had the HL started at 6.5% and now its 9.5% Why i will bear the cost if I am paying the EMI's.

The worst nightmare of HL's.

That's all the thing i want to close HL and shift to other loans.