5 banks that provide the best offers for loan prepayment

Many factors are related when one opts for a home loan or any other loan from a bank. We choose the banks for loans for various reasons and factors. The essential one among them is the interest rate. And the other one is the option of offers that the bank provides. We have put forth the following discussion, in which we list five of the banks from which you can avail yourself of the best offers for loan prepayment.

We have included the name of HDFC bank, as the HDFC bank home loan has the best prepayment offers, interest rates and benefits. Follow the discussion below to know more about this bank’s loan offers and the four other banks.

• HDFC Bank

HDFC bank is one of the best providers of home loans in the country. It has the most beneficial prepayment for individual and non-individual customers, and it includes both fixed and floating HDFC bank home loan interest rates. The individuals who have taken a loan from the bank at a floating or fixed interest rate and are willing to pay the loan back, partial or entirely, need not pay any prepayment charges.

Non-individual borrowers are to pay a certain sum of prepayment charges according to some conditions, which are as follows:

• If the payment is completed within six months, the borrower has to pay 2% of the prepaid sum with GST as a fee
• If the payment is completed between 6 to 36 months, the borrower must pay 25% of the opening principal sum annually, where 2% of the prepaid sum will be levied on the 25%
• If the payment is completed after 36 months, the borrowers need not pay any charges
• SBI Bank

Just like the HDFC bank home loan interest rate, the interest rate charged by the SBI bank is quite reasonable and affordable. There are certain conditions or rules regarding prepayment at SBI bank for loans, and they are as follows:

• The bank will levy loan interest on regular declining balances at the current fixed interest rate
• The bank has the authority to determine the interest computation rate
• The bank can determine the interest rate and change it when necessary
• The borrower is eligible to ask the bank for the discontinuation of the loan if the borrower does not find the interest rate satisfactory
• The borrower need not pay any charges for failing to pay back the loan before time
• The bank charges a prepayment fee on home loans except for the floating interest rate
• ICICI Bank

One need not pay any charges if the loan is on the floating interest rates. The borrowers whose loan is under the fixed interest rate scheme have to pay a prepayment fee of 2% of the principal outstanding amount with GST.

• RBL Bank Home Loan

The RBL bank levies different prepayment charge rules based on the type of loan one is borrowing from the bank. Thus, it is best to look through the various regulations that the RBL bank applies for the prepayment of its home loan offers.

• Tata Capital Home Loan

The following are the rules for prepayment when you borrow Tata Capital Home Loan:

• You need not pay any charges if you wish to pay back your loan, wholly or partly, before any point of your tenure
• The free prepayment charge option is allowed only if one pays the loan amount from their own funds and not through by availing a different loan

These were the five lenders with the best prepayment offers. One of the aspects of loans and their repayment process is the prepayment options and features. Its deciding which bank to opt for taking a loan. You must know which banks can offer you the best features and benefits when taking loans from them. Choosing the HDFC bank home loan is always the ideal option for its reliability, best interest rates, prepayment offers and many other features. So opt for one of the best banks for loans with Andromeda and enjoy the best offers and features of financial assistance.