Can I Pay All The EMI at Once at HDFC | CreditMantri (2024)

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Now, let's delve into the concepts mentioned in the article regarding pre-closing an HDFC loan by paying all EMIs at once:

1. EMI (Equated Monthly Installment): This is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are commonly used to repay loans, and they typically consist of both principal and interest.

2. Pre-closure of Loan Account: Repaying all EMIs at once is referred to as pre-closing the loan account. It involves settling the entire outstanding loan amount before the originally agreed-upon loan tenure.

3. Credit Score: The article mentions that repaying all EMIs at once is a great way to go debt-free and boost your credit score. The credit score is a numerical representation of an individual's creditworthiness. Timely repayment of loans positively impacts the credit score.

4. Loan Officer: To pre-close an HDFC loan, the borrower is advised to visit the loan officer at the nearest HDFC bank branch. A loan officer is a representative of the bank who assists customers in managing their loans.

5. Current Balance in Loan Account: Before initiating the pre-closure process, it is recommended to enquire about the current balance in the loan account. This includes the principal amount, interest, and any applicable charges.

6. Pre-closure Charges or Penalties: The borrower is informed about any pre-closure charges or penalties by the loan officer. These charges are additional fees imposed for settling the loan before the agreed-upon tenure.

7. Payment Method: The borrower is required to pay the entire balance amount, which is the sum of all pending EMIs and pre-closure charges, if any. Payment can be made using a cheque or demand draft (DD).

8. Acknowledgment and Loan Closing Letter: Upon payment, the loan officer provides the borrower with an acknowledgment of the balance amount along with a loan closing letter, officially confirming the closure of the loan account.

In summary, the article outlines the process of pre-closing an HDFC loan by paying all EMIs at once, emphasizing the benefits of becoming debt-free and improving one's credit score through this financial maneuver.