Diane Capri
Small Business Owner and Consultant in New Delhi, India
How to Pre-pay Your Car Loan
It might be easier to avail a car loan, with the pre-approved car loan schemes and exclusive offers from financers. There are multiple car loan options in the market and those who have a good credit score can avail the same and purchase their dream car. However, repayment of the car loan can be a hurdle. With the depreciation of car value that causes maintenance expenses and other charges that the borrower has to pay from his own pocket. Even car insurance premium costs will be higher. In this scenario, payment of the loan at the earliest is the best option. Since the vehicle is hypothecated to the bank, it cannot be sold. This makes it a liability to the car’s owner in the long run. The following is the step-by-step procedure for prepayment of your car loan and other related factors.
Steps involved in foreclosure of the car loan
1st Step – Get in touch with the Bank’s customer care helpdesk in order to get information about its loan centers. The bank’s loan centers will be responsible for handling the pre-closure procedure for your car loan account.
2nd Step – Approach the nearest loan center of the bank and request the attending official for the loan pre-closure form. Fill the form and sign where required.
3rd Step – Check the outstanding loan amount by providing your loan account number. This amount will have to be paid in order to foreclose the loan.
4th Step – The loan center official will provide the borrower a statement pertaining to the foreclosure of the car loan. This would include factors such as: principal loan amount that is outstanding, interest accrued on the loan up to the particular date, penalty on pre-closure, applicable service tax, EMI that is pending, any charges on Cheque bounce and any other penalty charges.
5th Step – Pay the total amount via Cheque or cash. Once the payment is made, the loan center executive will provide you a receipt of payment which would mention the loan account number, bank which has issued the Cheque for payment and the Cheque issue date and number.