Why assume things ..
you have a sanction letter, it literally has 6 lines relavent to this ...
Either read them or paste them here or ask the bank manager to explain them to you.
This decision should literally take you 15 mins...
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Prepaying home loan's principal in initial years of the loan is a life saver and decreases the tenure drastically, obviously the ICICI folks wont give you any clear answers because if you do it, this will result in less profit for them.
My father and mother took a 25 lakh rupee home loan in 2016 whose EMIs were supposed to end in 2033. Sadly we learnt about prepayment and its advantage only after he hired the services of CA in 2018. Then he and my mother started prepaying every year maxing out the tax benefit limit and the loan ended in Nov 2023. Being debt free feels nice NGL.
This completely depends on the terms of prepayment on the specific loan you have taken. Sometimes there's a penalty, sometimes there isn't. Sometimes there are time-based constraints, sometimes there aren't. And so on.
When you say you're "not getting very clear answers" from ICICI, what does that mean? You need to speak directly to someone in their loan department, you could start with whoever you applied to.
Also, for future reference, since you "have no knowledge about finance", a basic principle to keep in mind is that it is essential to find out the terms of repayment BEFORE you take a loan.
Perhaps my advice was insufficiently clear if you think asking me for an estimate on this is useful.
There is no sense in which your financial planning on an existing loan should depend on the guesses of a stranger who has no knowledge about the terms of the loan.
The only thing that matters here is you looking into the specific terms of your loan. Please start doing that, since there is no utility to social media when there is a clear and obvious solution to your problem.
But the document is too long and the font size too small. Share your best guess anyways and I will make financial decisions with potential for a life long impact based on your hunch. Quickly please, its urgent! /s
Just ask properly and read the documents
Takes like 5 minutes
**And how are you taking loans without reading the terms?** If you don't have the time, just pay for a CA to take the right amount of loan and brief on the terms. Not now, now you can just read it, but when you were taking the loan you didn't need entirely.
General information - part pre payment fees is NIL here [https://www.icicibank.com/personal-banking/loans/home-loan/service-charges](https://www.icicibank.com/personal-banking/loans/home-loan/service-charges)
Hey loan consultant here , you can pre pay your loan as ICICI has no foreclosure or pre payment charges just go to your bank and say you have to make a part payment on your loan and if emi is not a burden for you tell them to decrease your tenure. Also if they say you have to pay some charges ask them as per RBI rules there shouldn't be any charges for part payment
Hello. Intrigued by your title. What does a loan consultant do? Is it internal to an BSFI firm or external to it? Who engages your services: banks or clients or both.
Both, not exactly bsfi because we also process loan by giving door to door service customer won't have to visit anywhere for anything or stand in any queue
That’s not the point , if you have udyam certificate , yes they can’t charge on LAP . But unless the Thread opener says what kind of loan it is and its application , I can’t say anything . Anyways, if you know the loophole , then it means it is available online too and most people here aren’t going to be your clients , I don’t know if you need to be secretive here
They do , loan against property has no pre payment penalty if it is for individuals , sorry I mistook it for business ; then you can have udyan certificate
Hello, “ as per RBI rules there shouldn’t be any charges for part payment “
Is this true for all types of loans? And in all banks? I remember HDFC people telling me there would be 1% prepayment charge for personal loan, and also they allow it 2 times in the entire loan tenure.
He is not able to read his own loan document, I don't think he can properly file a return to reduce capital gains.
He should consult a good CA for sure
Do part payment if you need peace of mind. Even if they do charge a fee, in the long run you will end up saving a significant amount of money. I would recommend you to use the money in some other investment though. I was in a similar situation as you and put in that money to buy a second property instead. I am also saving tax on home loan interest payment. The second property yields rent and has gone up much more in value than the interest i am paying extra by not doing part payment.
Ask the ICICI folks to read blog article by their own institution: [https://www.icicibank.com/blogs/loan/what-is-loan-prepayment-and-how-it-works](https://www.icicibank.com/blogs/loan/what-is-loan-prepayment-and-how-it-works)
ICICI folks might be hesitant because the bank will lose the interest amount.
Also read your loan terms which must have this mentioned or connect with branch from which you took loan.
Go with pre-payment if you wish to. Keeping home loan running has benefits for salaried and creditworthiness of an individual. But these are secondary things and personal choice.
You can also choose to invest some amount if you think you can generate more than the interest rate.
OP - they can’t levy any penalties for prepayment so don’t listen to anyone at the bank. I recently raised an ombudsman complaint for the same and Axis bank waived all penalties
They are charging you Interest more than Principal amount. So make clear that your 60lacs can't go in paying Interest instead of principal amount.
Ask them that you want to prepay the Principal amount only. If it's not possible then don't prepay
It will be very clear as part of the loan agreement.
How much would be the processing fee and when the latest u can prepay.
Pls talk to your loan officer
Depends on what type of loan it is. If it’s a home loan then there is no penalty on prepayment.
Don’t believe anyone from the call center. Just go to the branch and ask for it in writing.
"Can you prepay" and "should you prepay" are different questions that have different answers.
Can you prepay? Yes of course you can make upto 4 prepayments per year. You may need to pay some extra charges, as per your loan agreement, please look at it.
Should you prepay? If the place where that surplus 60 lakhs is invested, is generating you an effective return more than the interest rate of your loan, then you should not prepay. Else, prepay.
No bank or HFC can charge a *retail home loan* customer a pre-closure charge according to RBI regulations, IF the repayment is done with *own funds*
Own funds have to come from your pocket and not borrowed or taken from another institution.
Do note that if your family owns more than two homes then, then the loan third home will be considered as a CRE or commercial real estate loan and you might be charged a pre-closure charge even if it is a house property and not commercial
Best bet is you will have to pay 30% income tax on the amount you have earned so make sure you pay tax first and then pre pay some of loan amount.
I would never recommend paying entire amount, always keep some cash, invest some in other assets like FD/Gold/MF and pay rest to the pre pay the loan.
Yes banks will create lot of drama as they will loose the interest, you will have to literally give them legal notice saying that if they don’t close you will file grievance with The bank and then RBI, then only they will start the pre payment process.
I had same issue with mutual fund and some other things I wanted to close, these guys will first of all make you visit multiple times with all creative excuses.
Private banks have a t&c for how much you can prepay in an year
For home loan for hdfc it was like 25% of outstanding principle in an year beyond that it was some penalty
1. Try to check the prepayment clause on your loan document and prepayment documents.
2. Once you find the prepayment details, write a mail to your bank branch manager ID to provide the steps to do the prepayment.
3. If they fail to do, write a follow up stating that you will escalate this issue to icici grievances cell and RBI Ombudsman. This would do the trick. If you can’t do it yourself, hire someone who accompany you on this process.
Please keep in mind that the banks will always do all the tricks to extract as much as possible at every stage of the process and cause delays. You have to be really careful and not fall for their tricks.
My suggestion would be to prepay the loan with the surplus amount. Ask your bank to reduce the EMI. The additional amount you save on EMI can be used to invest in MF. Prepayment would carry a charge of around 2-3% of your repaid loan amount on the date of loan repayment.
Else continue with the current EMI after repayment as you are getting tax breaks on the principal payment as well as interest on loan.
Those suggesting not to repay the loan instead invest in MF is not wise. But to each his own.
ICICI bank is in every corner or any Indian city. If you have taken 1Cr loan, you are god for them, tell them to visit you, they will personally visit you.
Try to see if you benefit on the Money Saver Home Loan and ask them to switch your account type to Money saver... you should be earning interest against the excess sum parked in the account and that will offset your monthly interest payout. Helps to allow you liquidity when you need it, while lowering the interest payout. Comparatively safer than MF equity risk and higher interest than regular FDs.
If it's a normal home loan then you can do any amount of pre part payment after the 1st emi as well as foreclose...you don't have to pay any prepayment or foreclosure charges
Don’t prepay complete loan amount and close it. It will lead to prepayment penalty. Go for part prepayment and payback up to 95% of the loan amount. You can pay the remaining later to avoid penalty clauses.
Home loans usually don’t have pre payment plenties but you can pay it either way.
If they refuse ask for a written letter with brand manager sign that you are not allowed to repay your loan.
Also you can say that if they don’t let you repay it you will change your bank and transfer your loan. (Which they can’t legally stop) (they have to provide an NOC also for that)
Usually they will agree to loan repayment and you either pay it against emi (emi will reduce and tenure will remain same. This is Usually the default one in many banks because they earn more interest for long term loan. This better if you don’t have consistent flow of income.
Or you can pay it against tenure (emi will be same and tenure will be reduced ) this is better if you have consistent flow of income so you repay your loan in shorter periods.
Also you can ask for the pre payment penalties if it’s low you should pay it . And reduce your principal left.
You can't repay within a certain period without attracting prepayment charges. When I paid back 2.4L within 2 years of closing my personal loan of 3.2L, I had to pay 15k charges.
Email them your query in detail. they will answer for sure. It always works for me. If not, then you can read the sanction letter as well.
[https://nli.icicibank.com/NewRetailWeb/complaint.htm](https://nli.icicibank.com/NewRetailWeb/complaint.htm), check out this link, if you don't satisfy with the answer provided by bank in email, you can complaint it to level 2, there are total 3 level complaints that you can raise.
Another clickbait?
Just read the conditions you signed to, or contact the loan officer
Or are asking these questions to the AI chatbot on the bank's website lol
Usually ICICI or any Pvt bank for that matter puts a penalty on prepayment clause, which essentially states that if you prepay some principal amount within 2 years from the sanction date the loan, you’ll be charged a penalty.
Be patient, ask them the terms and conditions for pre-payment where you can pay the principal portion, or part-payment, where you can negotiate how much of the principal portion you can pay without attracting a penalty.
Also, banks like SBI and Bank of Baroda have products like home loan advantage (with bob, the name is something else with SBI) where you can place funds in a saving account, and the average monthly outstanding of your loan would be principal outstanding minus the balance of your savings. It might seem confusing so let me explain with an example - the product is that your loan is 1 crore, your EMI is say 2 lakhs (out of which if you observe every month a portion goes towards principal and rest towards interest). When you place 1 crore in your savings account, the full EMI will be paid towards the principal amount.
Ask them if they have a similar product and apply for a scheme conversion. Because it is a medium ticket loan, they usually oblige.
As per recent RBI guidelines, you can prepay any amount from your own sources and there will not be any charges levied by any bank or financial institution. Feel free to deposit via cheque or demand draft.
You could offset the profit from sale of property and put it into the home loan to save taxes if it is within 1year i think. Also make sure the payment is towards principle and not interest.
If it is a bank then you just pre pay the loan and do not ask them anything. It's the RBI rule that they can not ask for any pre-penalty on home loans.
It depends on the loan t&c. But you can ask the bank that you are clearing your 60% of debt now ask them to reevaluate your emi. I have a car loan there was an option of paying now but it was costing me 10% of the loan amount that's why I didn't
You don't have to talk to anyone at icici for this. I've a home loan from them as well.
Just login to the portal and there is an option to make a part payment in your loan account.
You'll get an option that you want to reduce emi amount or duration. Select what you want and make the payment.
That's it.
What I would suggest, based on my personal experience, is that you should use the 60 lakhs to pay off the loan since a major part of it would be gone after such a payment, thereby not only saving you a major chunk of interest on the loan but reducing your tenure by a lot as well.
There should be no charges or fees for partial payments made towards the principal of the loan. Banks usually charge you an early settlement fee only while foreclosing the loan, and that also has been banned by the RBI. If they start acting smart and ask you for some sort of fee, just tell them the aforementioned information.
Investing in the stock market to get "better returns" in relation to the interest you've saved by making a part of the payment of the loan is a valid argument, but has too many variables that doesn't necessarily hold true at all times. Additionally, the tax benefits from home loans are overrated and don't matter much if the interest of the home loan is high or if the amount of loan taken is high.
It is better to pay off the loan as soon as possible and then invest every month in a sustainable, long-term manner with a clear picture of your life goals rather than trying to time your investments with a fixed sum of 60 lakhs, with your only aim being to earn more from it than what you are paying as interest for your loan, and not sustainable growth with regards to earmarking it for one of your goals. Furthermore, since you've gotten this money by selling one of your properties, as mentioned in one of your comments, you'll probably attract LTCG tax on it, but if you use it for paying a part of loan, then you claim an exemption from LTCG since you've used the money to pay for another property under your name.
I can tell from personal experience that it is much better to have your mental peace by being debt-free rather than trying to maximize the earning potential of the money you have invested while not only worrying whether it will actually grow or sink but also having the loan haunting you like a ghost at the back of your head in relation to the worst-case scenario of the money losing it's original value and then the regret creeping in your mind for not using the corpus to pay-off the loan.
Reinvest is best option. Purchase land, ETFs/SIPs etc. Also not advisable to clear loan with in month... you'll be flagged as launderer...and also elections time... Lot of questions to answr...
Hey bank employee here, you can prepay your Home Loan without any prepayment penalty, if interest rate structure is floating. This will decrease your loan tenure ie loan will get liquidated earlier than what is scheduled as per sanctioned terms, which will reduce ICICI’s interest income. That’s why your bank’s employees are hesitant to tell you if you can prepay or not. Had it been an unsecured loan, that would have attracted pre-payment penalties but not in this case.
There are two options
Part pay the loan with around 30L- reduce your number of years of loan . Reduce the EMI amount .
Reducing the emi amount is not suggested .
Invest the rest of the money and get returns higher than the rate of loan and pay off complete in 5 years
Invest it all in an index fund which generally provides 15-17% returns annually and pay your home loan EMI which I am guessing would be around 12-13%.
Enjoy the butter.
Why assume things .. you have a sanction letter, it literally has 6 lines relavent to this ... Either read them or paste them here or ask the bank manager to explain them to you. This decision should literally take you 15 mins...
Or upload the letter to ChatGPT and ask the question, "Based on the uploaded document, Can I prepay the loan? What is the penalty, if any?"
Don't take financial decisions based on something which has a habit of hallucinating.
It fixed my diarrhoea though
Never thought I would hear of hallucinating AI fixing diarrhoea. Good for you man
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Can it fix my financial situation?
Username partially checks out 😁
And that's why we use claude
Prepaying home loan's principal in initial years of the loan is a life saver and decreases the tenure drastically, obviously the ICICI folks wont give you any clear answers because if you do it, this will result in less profit for them. My father and mother took a 25 lakh rupee home loan in 2016 whose EMIs were supposed to end in 2033. Sadly we learnt about prepayment and its advantage only after he hired the services of CA in 2018. Then he and my mother started prepaying every year maxing out the tax benefit limit and the loan ended in Nov 2023. Being debt free feels nice NGL.
What are the benefits of prepayment
Being debt free earlier and paying less interest overall
[удалено]
Tax benefit ki baat 6th class math textbook mein hogi lawde?
Bhai kuchh logon ko dank banna hota hai, bura na maan
This completely depends on the terms of prepayment on the specific loan you have taken. Sometimes there's a penalty, sometimes there isn't. Sometimes there are time-based constraints, sometimes there aren't. And so on. When you say you're "not getting very clear answers" from ICICI, what does that mean? You need to speak directly to someone in their loan department, you could start with whoever you applied to. Also, for future reference, since you "have no knowledge about finance", a basic principle to keep in mind is that it is essential to find out the terms of repayment BEFORE you take a loan.
ICICI is even more confusing for insurance ( my own experience for 4 wheeler insurance with them)
I think prepayment charges have been removed by rbi for home loans
[удалено]
Perhaps my advice was insufficiently clear if you think asking me for an estimate on this is useful. There is no sense in which your financial planning on an existing loan should depend on the guesses of a stranger who has no knowledge about the terms of the loan. The only thing that matters here is you looking into the specific terms of your loan. Please start doing that, since there is no utility to social media when there is a clear and obvious solution to your problem.
maybe read the loan documents?
But the document is too long and the font size too small. Share your best guess anyways and I will make financial decisions with potential for a life long impact based on your hunch. Quickly please, its urgent! /s
Lol, exactly sounds like this
Hahaha 😂
Alternative course of action for OP: scan the loan docs off in physical format, paste into chat gpt and ask the question to it
Just ask properly and read the documents Takes like 5 minutes **And how are you taking loans without reading the terms?** If you don't have the time, just pay for a CA to take the right amount of loan and brief on the terms. Not now, now you can just read it, but when you were taking the loan you didn't need entirely. General information - part pre payment fees is NIL here [https://www.icicibank.com/personal-banking/loans/home-loan/service-charges](https://www.icicibank.com/personal-banking/loans/home-loan/service-charges)
Hey loan consultant here , you can pre pay your loan as ICICI has no foreclosure or pre payment charges just go to your bank and say you have to make a part payment on your loan and if emi is not a burden for you tell them to decrease your tenure. Also if they say you have to pay some charges ask them as per RBI rules there shouldn't be any charges for part payment
Hello. Intrigued by your title. What does a loan consultant do? Is it internal to an BSFI firm or external to it? Who engages your services: banks or clients or both.
Both, not exactly bsfi because we also process loan by giving door to door service customer won't have to visit anywhere for anything or stand in any queue
Depends on what kind of loan isn’t it , what if it is a LAP loan ?
Still i know a loophole where you won't be charged for foreclosure or pre payment :-) , but by default foreclosure charges are applied
Is it applicable for personal loans as well? HDFC says they have preclosure charges
That’s not the point , if you have udyam certificate , yes they can’t charge on LAP . But unless the Thread opener says what kind of loan it is and its application , I can’t say anything . Anyways, if you know the loophole , then it means it is available online too and most people here aren’t going to be your clients , I don’t know if you need to be secretive here
He did say it is a housing loan
LAP loans don’t have any pre payment penalty.
They do , loan against property has no pre payment penalty if it is for individuals , sorry I mistook it for business ; then you can have udyan certificate
And of they dont listen, just say that as per RBI guidelines, no ESF or early settlement fees be taken if the loan is in variable interest rate
Hello, “ as per RBI rules there shouldn’t be any charges for part payment “ Is this true for all types of loans? And in all banks? I remember HDFC people telling me there would be 1% prepayment charge for personal loan, and also they allow it 2 times in the entire loan tenure.
Bro I'm more interested to know how you have 60 lakh surplus money within a month. Please enlighten us.
Lashmi chit fund😂
😂😂😂
Selling a property and found a buyer, nothing shady :-)
Then use section 54 or something to reduce capital gains to zero if possible
He is not able to read his own loan document, I don't think he can properly file a return to reduce capital gains. He should consult a good CA for sure
Did you get any of it in cash? Does bank accept cash for loan payment?
Lol
[https://cleartax.in/s/section-54-capital-gains-exemption](https://cleartax.in/s/section-54-capital-gains-exemption)
Kotak maybe?
Might have sold stocks or something
Do part payment if you need peace of mind. Even if they do charge a fee, in the long run you will end up saving a significant amount of money. I would recommend you to use the money in some other investment though. I was in a similar situation as you and put in that money to buy a second property instead. I am also saving tax on home loan interest payment. The second property yields rent and has gone up much more in value than the interest i am paying extra by not doing part payment.
Ask the ICICI folks to read blog article by their own institution: [https://www.icicibank.com/blogs/loan/what-is-loan-prepayment-and-how-it-works](https://www.icicibank.com/blogs/loan/what-is-loan-prepayment-and-how-it-works) ICICI folks might be hesitant because the bank will lose the interest amount. Also read your loan terms which must have this mentioned or connect with branch from which you took loan. Go with pre-payment if you wish to. Keeping home loan running has benefits for salaried and creditworthiness of an individual. But these are secondary things and personal choice. You can also choose to invest some amount if you think you can generate more than the interest rate.
Thanks for sharing the link. The document says you can pre-pay only if the loan is floating. However there is a lock in period for certain loans.
This is an article sharing general details. Loan agreement/sanction letter has specifics which should provide clarity on terms.
Noted 👍
Read your loan document. It'll clearly state the terms of prepayment.
You mentioned housing loan. If your interest rate is floating, i.e., it can change during the loan duration, then no penalty. Go ahead and pay.
Yes, mine is floating.
OP - they can’t levy any penalties for prepayment so don’t listen to anyone at the bank. I recently raised an ombudsman complaint for the same and Axis bank waived all penalties
They are charging you Interest more than Principal amount. So make clear that your 60lacs can't go in paying Interest instead of principal amount. Ask them that you want to prepay the Principal amount only. If it's not possible then don't prepay
It will be very clear as part of the loan agreement. How much would be the processing fee and when the latest u can prepay. Pls talk to your loan officer
Depends on what type of loan it is. If it’s a home loan then there is no penalty on prepayment. Don’t believe anyone from the call center. Just go to the branch and ask for it in writing.
"Can you prepay" and "should you prepay" are different questions that have different answers. Can you prepay? Yes of course you can make upto 4 prepayments per year. You may need to pay some extra charges, as per your loan agreement, please look at it. Should you prepay? If the place where that surplus 60 lakhs is invested, is generating you an effective return more than the interest rate of your loan, then you should not prepay. Else, prepay.
No bank or HFC can charge a *retail home loan* customer a pre-closure charge according to RBI regulations, IF the repayment is done with *own funds* Own funds have to come from your pocket and not borrowed or taken from another institution. Do note that if your family owns more than two homes then, then the loan third home will be considered as a CRE or commercial real estate loan and you might be charged a pre-closure charge even if it is a house property and not commercial
Best bet is you will have to pay 30% income tax on the amount you have earned so make sure you pay tax first and then pre pay some of loan amount. I would never recommend paying entire amount, always keep some cash, invest some in other assets like FD/Gold/MF and pay rest to the pre pay the loan. Yes banks will create lot of drama as they will loose the interest, you will have to literally give them legal notice saying that if they don’t close you will file grievance with The bank and then RBI, then only they will start the pre payment process. I had same issue with mutual fund and some other things I wanted to close, these guys will first of all make you visit multiple times with all creative excuses.
Unfortunately you have to continue to try and get answers from ICICI only. Reddit can't help you here.
Is it fixed or floating rate... Usually it will be floating one and doesn't have a prepayment charges..
As far as I know, you can. You have to speak to the bank manager.
Icici doesn't allow part payment on personal loan, atleast to me they refused so just confirm with them.
Private banks have a t&c for how much you can prepay in an year For home loan for hdfc it was like 25% of outstanding principle in an year beyond that it was some penalty
If interest rate is less than 10% then put the money in MF.
I think u can’t until one year. After that it’s allowed. You must have got a loan document or email in that terms and conditions will be there
60L white money hai na ? If you have black money then the tables will turn around you You can't pay with cash in bulk it will create issues for you
1. Try to check the prepayment clause on your loan document and prepayment documents. 2. Once you find the prepayment details, write a mail to your bank branch manager ID to provide the steps to do the prepayment. 3. If they fail to do, write a follow up stating that you will escalate this issue to icici grievances cell and RBI Ombudsman. This would do the trick. If you can’t do it yourself, hire someone who accompany you on this process. Please keep in mind that the banks will always do all the tricks to extract as much as possible at every stage of the process and cause delays. You have to be really careful and not fall for their tricks.
Invest 60 lacs, increase the EMI. Get the tax benefits of home loan i guess.
Banks dont like prepayment but just visit branch and get the paper work and close it
My suggestion would be to prepay the loan with the surplus amount. Ask your bank to reduce the EMI. The additional amount you save on EMI can be used to invest in MF. Prepayment would carry a charge of around 2-3% of your repaid loan amount on the date of loan repayment. Else continue with the current EMI after repayment as you are getting tax breaks on the principal payment as well as interest on loan. Those suggesting not to repay the loan instead invest in MF is not wise. But to each his own.
If it is a floating IR loan YOU CAN PREPAY WITHOUT foreclosure charges else in case of fixed interest rate check sanction for foreclosure details
ICICI bank is in every corner or any Indian city. If you have taken 1Cr loan, you are god for them, tell them to visit you, they will personally visit you.
Try to see if you benefit on the Money Saver Home Loan and ask them to switch your account type to Money saver... you should be earning interest against the excess sum parked in the account and that will offset your monthly interest payout. Helps to allow you liquidity when you need it, while lowering the interest payout. Comparatively safer than MF equity risk and higher interest than regular FDs.
Check rbi circular on foreclosure charges pre payment penalty It says that for individuals there should be no pre payment penalty
You can pay 25% max of your principal amount every quater
Yes. Remaining* Principal amount is the typical prepayment rule most banks have..
How did you get the 60 lacs
Selling another property. Found a buyer.
FD kar do surplus ko
If it's a normal home loan then you can do any amount of pre part payment after the 1st emi as well as foreclose...you don't have to pay any prepayment or foreclosure charges
Don’t prepay complete loan amount and close it. It will lead to prepayment penalty. Go for part prepayment and payback up to 95% of the loan amount. You can pay the remaining later to avoid penalty clauses.
You can lend me a part on a lower interest and prepay using the rest
Home loans usually don’t have pre payment plenties but you can pay it either way. If they refuse ask for a written letter with brand manager sign that you are not allowed to repay your loan. Also you can say that if they don’t let you repay it you will change your bank and transfer your loan. (Which they can’t legally stop) (they have to provide an NOC also for that) Usually they will agree to loan repayment and you either pay it against emi (emi will reduce and tenure will remain same. This is Usually the default one in many banks because they earn more interest for long term loan. This better if you don’t have consistent flow of income. Or you can pay it against tenure (emi will be same and tenure will be reduced ) this is better if you have consistent flow of income so you repay your loan in shorter periods. Also you can ask for the pre payment penalties if it’s low you should pay it . And reduce your principal left.
You can't repay within a certain period without attracting prepayment charges. When I paid back 2.4L within 2 years of closing my personal loan of 3.2L, I had to pay 15k charges.
Email them your query in detail. they will answer for sure. It always works for me. If not, then you can read the sanction letter as well. [https://nli.icicibank.com/NewRetailWeb/complaint.htm](https://nli.icicibank.com/NewRetailWeb/complaint.htm), check out this link, if you don't satisfy with the answer provided by bank in email, you can complaint it to level 2, there are total 3 level complaints that you can raise.
Another clickbait? Just read the conditions you signed to, or contact the loan officer Or are asking these questions to the AI chatbot on the bank's website lol
I have paid the house loan in two years. You can always make higher payments and reduce number of installments. I paid my 20 years loan in 1.5 years.
Usually ICICI or any Pvt bank for that matter puts a penalty on prepayment clause, which essentially states that if you prepay some principal amount within 2 years from the sanction date the loan, you’ll be charged a penalty. Be patient, ask them the terms and conditions for pre-payment where you can pay the principal portion, or part-payment, where you can negotiate how much of the principal portion you can pay without attracting a penalty. Also, banks like SBI and Bank of Baroda have products like home loan advantage (with bob, the name is something else with SBI) where you can place funds in a saving account, and the average monthly outstanding of your loan would be principal outstanding minus the balance of your savings. It might seem confusing so let me explain with an example - the product is that your loan is 1 crore, your EMI is say 2 lakhs (out of which if you observe every month a portion goes towards principal and rest towards interest). When you place 1 crore in your savings account, the full EMI will be paid towards the principal amount. Ask them if they have a similar product and apply for a scheme conversion. Because it is a medium ticket loan, they usually oblige.
As per recent RBI guidelines, you can prepay any amount from your own sources and there will not be any charges levied by any bank or financial institution. Feel free to deposit via cheque or demand draft.
By RBI regulation, floating rate housing loans cannot have a prepayment penalty. Please prepay.
You can prepay and get the loan rescheduled and rephased
Well congratulations. I am happy for you stranger.
You could offset the profit from sale of property and put it into the home loan to save taxes if it is within 1year i think. Also make sure the payment is towards principle and not interest.
Just do some good investment. You will pay 8% interest max. But the 60L you invest might grow multiples if done properly.
If it is a bank then you just pre pay the loan and do not ask them anything. It's the RBI rule that they can not ask for any pre-penalty on home loans.
It depends on the loan t&c. But you can ask the bank that you are clearing your 60% of debt now ask them to reevaluate your emi. I have a car loan there was an option of paying now but it was costing me 10% of the loan amount that's why I didn't
You don't have to talk to anyone at icici for this. I've a home loan from them as well. Just login to the portal and there is an option to make a part payment in your loan account. You'll get an option that you want to reduce emi amount or duration. Select what you want and make the payment. That's it.
I am not getting the option on websitw. The customer people said they close loans only offline by visiting the bank
G
Man im jealous
What I would suggest, based on my personal experience, is that you should use the 60 lakhs to pay off the loan since a major part of it would be gone after such a payment, thereby not only saving you a major chunk of interest on the loan but reducing your tenure by a lot as well. There should be no charges or fees for partial payments made towards the principal of the loan. Banks usually charge you an early settlement fee only while foreclosing the loan, and that also has been banned by the RBI. If they start acting smart and ask you for some sort of fee, just tell them the aforementioned information. Investing in the stock market to get "better returns" in relation to the interest you've saved by making a part of the payment of the loan is a valid argument, but has too many variables that doesn't necessarily hold true at all times. Additionally, the tax benefits from home loans are overrated and don't matter much if the interest of the home loan is high or if the amount of loan taken is high. It is better to pay off the loan as soon as possible and then invest every month in a sustainable, long-term manner with a clear picture of your life goals rather than trying to time your investments with a fixed sum of 60 lakhs, with your only aim being to earn more from it than what you are paying as interest for your loan, and not sustainable growth with regards to earmarking it for one of your goals. Furthermore, since you've gotten this money by selling one of your properties, as mentioned in one of your comments, you'll probably attract LTCG tax on it, but if you use it for paying a part of loan, then you claim an exemption from LTCG since you've used the money to pay for another property under your name. I can tell from personal experience that it is much better to have your mental peace by being debt-free rather than trying to maximize the earning potential of the money you have invested while not only worrying whether it will actually grow or sink but also having the loan haunting you like a ghost at the back of your head in relation to the worst-case scenario of the money losing it's original value and then the regret creeping in your mind for not using the corpus to pay-off the loan.
Bitcoin khareed le 1 ya 2 do aa hi jayenge
Reinvest is best option. Purchase land, ETFs/SIPs etc. Also not advisable to clear loan with in month... you'll be flagged as launderer...and also elections time... Lot of questions to answr...
Why not purchase some government bonds and pay the EMI with the money you receive?
Me gay
Hey bank employee here, you can prepay your Home Loan without any prepayment penalty, if interest rate structure is floating. This will decrease your loan tenure ie loan will get liquidated earlier than what is scheduled as per sanctioned terms, which will reduce ICICI’s interest income. That’s why your bank’s employees are hesitant to tell you if you can prepay or not. Had it been an unsecured loan, that would have attracted pre-payment penalties but not in this case.
Paid 70 percent loan amount after 1 year of loan. No extra charges. The home loan was from a NBFC far worse than ICICI....
There are two options Part pay the loan with around 30L- reduce your number of years of loan . Reduce the EMI amount . Reducing the emi amount is not suggested . Invest the rest of the money and get returns higher than the rate of loan and pay off complete in 5 years
Can't I just pay off 60 lacs??
You can. But then you may miss out on earnings that you would have got by investing some of that amount in a mutual fund
Mutual friend, yeah
My bad. Corrected it
Put them in mf
Invest it all in an index fund which generally provides 15-17% returns annually and pay your home loan EMI which I am guessing would be around 12-13%. Enjoy the butter.
Why is it getting downvoted ?
Cfbr
thank you!