How To Close HDFC Personal Loan (Preclosure Rules, Charges)

Can I close my HDFC personal loan before 1 year (12 months)? This is what the question one of my blog readers asked a few days back. As I took HDFC personal loan couple of years back, I can answer this question from my own experience. Although a personal loan is one of the easiest ways to finance your emergency need, it is quite difficult to close any personal loan quickly.

To answer the question, one can’t close your HDFC personal loan before completing 12 months. That means you have to pay at least 12 EMI before you approach HDFC bank with your personal loan preclosure application. Any payment above Rs. 49000/- should be made vide Account Payee Cheque / Pay order /Demand draft.

Do you know what are the HDFC Personal Loan Pre-closure charges? Here are a few details.

  • 13-24 Months – 4% of Principal Outstanding
  • 25-36 Months – 3% of Principal Outstanding
  • 36 Months – 2% of Principal Outstanding

Things To Know Before Closing HDFC Personal Loan

The very first thing I want to say that, you can’t close HDFC personal loan online. You have to visit your nearest HDFc bank branch or the main branch of that city to apply for personal loan closure manually.

Another key point is that one can’t close HDFC personal loan before 1 year completion. In case you are a self-employed person, then it will be 6 months.

Means first year you have to pay the EMIs so that banks can squeeze you to the max. This is the clause made for the benefit of the bank only. But you have signed the terms & condition while taking the personal loan from HDFC bank.

Anyway, “Jab Loan liya he, to chukana to parega” 🙂 . Let’s check out the steps and facts you have to take after you complete 1 year of your personal loan.

Steps to Close HDFC Personal Loan (My Experience Shared)

Step #1: First of all, call the HDFC personal banking number from any city 61616060. You just have to add your city code this number and call them. You can ask them about how to close hdfc personal loan, to understand whether any specific process for your city or not.

Step #2: Next is to ask the HDFC customer care person about the branch in your city where you can close the HDFC personal loan. You cannot close the loan from any branch, but if you want to take the loan then they can visit your doorstep also. If you are in Hyderabad, then you have to visit the HDFC Begumpet branch to close your personal loan.

Step #3: Although RBI has instructed banks to waive off the pre-closure charges banks are smarter than RBI as they will charge you 4% closure charges with some valid clause that you may not understand. So be ready to pay an extra 4% amount to close to your loan.

Step #4: Which documents should I carry at the time of visiting HDFC bank? Carry necessary documents to close you HDFC personal loan like: Xerox copy of ID proof, the amount can be paid in form of Cash/ Cheque and Loan account number.

Here one point to note is that it is not necessary that the amount need to pay from your account only. You can pay the loan balance from your relatives or friends account as well. In that take them to the bank with you so that they can issue the cheque for your personal loan closure.

HDFC Personal loan closure charges

  • 13-24 Months – 4% of Principal Outstanding
  • 25-36 Months – 3% of Principal Outstanding
  • 36 Months – 2% of Principal Outstanding

Step #5: Now the closure date is very important as if you close the loan before 14th of that month then your next ECS EMI will not be deducted. But if close the personal loan after 14th of that month then your account will be debited with the EMI. But after 7 working days, you will get your money back with interest amount.

After all the steps completed successfully, the bank will provide you an acknowledgement letter which you should keep carefully. The final closure agreement document come in few days after the closure of the loan.

HDFC Personal Loan Closure FAQs

Are there any additional charges for loan repayment?

The additional charges (if any) are applicable in case you default or in case of SWAP (i.e. change the repayment mode). The charges are updated and can be viewed in the Fees & Charges section in the Bank’s website of each loan product.

How much interest you have to pay for the days between EMI date and foreclosure date in addition to the foreclosure charges.

One of the blog reader, Sreenivas has shared a very useful calculation of interest which will definitely increase your awareness. Here is the Example:

EMI date is 5th, and you are closing the loan on 25th at that time lets say the principal remaining is 3,00,000/-, lets say interest rate per annum is 14%, then

The interest for 20 days (5th to 25th) = 3,00,000 * (14 / 100) * (20/365) = 2301.3

Hence the total amount you need to pay to the bank would be = principal + foreclosure charges + service tax on foreclosure charge + interest for the balance days (which is calculated as above).

If you have any doubt regarding HDFC personal loan closure, then you can call to HDFC bank personal loan customer care number by visiting the page. If you have also closed your HDFC personal loan, then you can write a comment below and share your experience o help our readers. Thank you for sharing this experience within your Facebook, Twitter profiles.

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    1. What do you mean by force closure? I think the max impact will be you have to pay some penalty that’s it and that is also if mentioned in terms & conditions.

  1. I had taken personal loan from hdfc bank on 2014 …I would like to close my loan right now .other bank cheque is acceptable or not ?…..I don’t have hdfc bank account.can I approach near by any of the hdfc bank ?…is it possible to close my loan.?which all are the documents required for closing my loan?…any extra charge s I have to pay more ?plz help me…thank u

  2. Hi ,

    I took PL RS.566,000.00 last month in HDFC bank, my first EMI this month March 4th. How i strongly decided to close my PL asap.. Planning to take housing loan in Govt Bank until i close my Pl Loan i cant apply housing loan in any banks…………………….Please advise on this

  3. Hello shantnu
    I want to apply for home loan before that I want to close my pl whose 4 EMI are paid. Or is there any procedure for merging both so that one EMI will be paid.

  4. i want to close my hdfc loan but i am out of India. can i authorize anyone to pay the amount and close the loan account.

  5. HI I have taken 250000 PL with rate of interest is 12.75% & i made 12 EMI payment.
    now i want to close my PL with closing interest of 4%. How much amount still i have to pay for closing PL??
    Please can u suggest me..

    1. hi sir

      my cousin as taken loan for two weeler with my name in 2013 and he was not will for payment now i would like pay the total amount and i will close the loan amount plz sir do the needfull becouse it damaging my cibil score

  6. Hello Shantanu, I wanted to Repay my Loan very soon along with all foreclosure charges as may be I have to shift in different city.
    Request you to help me to foreclose Loan#37957228

    I have already paid only 7 EMI’s can I close my loan?

  7. I have completed all the EMI upto August 2016. But I have some bounce charges about Rs.10000/-. Is it the HDFC Bank waived the amount in the decreasing manner.

  8. Hi Santanu,

    My personal loan of 3 lakhs will be ended by this month. i have paid all the EMIs. After this last EMI do i need to collect that personal loan closure note from the bank with all clearance?


  9. Hi Shantanu,
    I took a PL of 10 lakhs from HDFC Bank, I have paid 13 EMIs, now I want to make Pre-payment and close this account, when I took this loan, hdfc executive told me that pre closure charges will be nill for you but here I am finding that I have to pay 4% plus service tax on principle amount. So is that right in my case as well?

  10. I am Sharbani Naskar account holder of your bank branch name- uluberia-Howrah-West Bengal. my savings account no. 50100056311925. i requested to you please close my account no. already i submit account close form on 01.08.2015 in uluberia branch.

  11. I applied for a Loan of 30,000euro for my son’s hospital bills on Friday with Mr.Micheal Charles and today the money was paid out to my account Today.. am now happy now because he got me out of debt by giving me a loan those who needs loan should contact him now via: for more info.

  12. Dear Sir,

    I have cleared my personal loan taken from HDFC bank and received the loan closure letter from the bank.I have not made any settlement and paid the complete loan amount including all the charges but while going through my CIBIL report I have came to know that HDFC bank has put my name on the defaulter list and shown the written off status.

    Kindly help me to get my name removed from defaulter list.

  13. Hi
    I want to close my HDFC personal loan.

    Planing to close after 1 year..December -2016th.

    Pending principle amount – 3,20.000=00

    Can you please suggest how much i have to pay @ the time of closing.

  14. Hello Santanu,

    I took a personal loan of 5 lacs for 5 years. I paid 25 EMIs(25th today). When I was taking loan, the bank representative told me that I can make partial prepayments. I plan to pay the remaining principal amount in 3 installments. When I reached out to customer care, they said that no partial payments are allowed. Did you think of this option and asked the bank about it?


    1. I am not sure why they said like this. Have you checked your loan documents and terms? For my case there was a rule that I can’t close the loan before 1 year.

  15. Hi,

    How can one close HDFC personal loan from outside India?

    Can the person authorize an individual in India to pay on his behalf? Or can he issue the check in HDFC name and authorize the person to drop at HDFC bank on his behalf?


    1. This is a good question, but I am not aware about this. Hope someone from readers can answer your query or else please contact HDFC bank only.

  16. Hello..

    It is really good blog to read..

    I have question, I have taken business loan of 6 I have paid 12 EMI..and Now if I want to pay loan, then I need to pay whole amount with interest OR just principal amount ?


    1. If you want to close your personal loan, then definitely you will pay only the remaining principle amount only. But I am not sure about the rules of closing business loan in HDFC bank. Please contact your nearest HDFC branch for more details.

  17. I have just taken out my first personal loan and i must say i am extremely impressed as to how straightforward the services is. All i had to do was applied and filled out the application form and submit it! I was then told in about 10 minutes that i was accepted and that the funds has been approved and on the way to my bank after submitting the required information’s and i received a loan of $35,000 USD! Extremely impressive. Now i have my own car and also have my own business thanks to Am.Invest LIMITED. Apply for your loan today without any stress with Am.

  18. Is it mandatory to update the communication address for pre-closure of personal loan?

    My HDFC loan account is related to the address in Pune, but I am residing in Coimbatore now. I want to close the personal loan. Is it possible from Coimbatore, or do I have to update my Coimbatore address before closing the loan amount?

    1. Generally Bank will hand over a closing note confirmation on the day you close the account. But the final letter will be delivered to your registered address only. So, better to ask HDFC bank first before closing your loan.

  19. Hi,
    I have taken a personal loan from HDFC and paid 2 months EMI also, i have taken for my marriage but some of the personal reasons it got postponed, is there any procedure to close my after 6months.

  20. HI,

    I have taken personal loan one year back and now I want to preclose the outstanding amount but as of now I am not in INDIA. What to do? Any idea how to close in this case?Please suggest

    Best Regards,

  21. Hello,

    Can someone tell me please if pre-payment option available in HDFCBank personal loan? Bajaj and other banks offer it but cannot find it on HDFCBank site.


    1. Please call HDFC customer care number. There is a condition of continuing the loan for at least 1 year, not sure whether it is there or not in 2016.

  22. hi santanu
    i want close my personal loan
    mene 36 mahine ke liye personal liya tha mene 23 emi paid kr di he ab mere baki k bache amount ko pura paid krna he me per month 8813 ki emi paid kr raha hu mujhe ye bataye ke k mujhe kitna amount aur dena hoga loan close krne me plz calculate kr k bataye

  23. I had taken a loan on my credit card for 5.8 lac. I have paid 11 EMI’s already. I wish to preclose the loan now and CITI is asking for 3% foreclosure charges. Is there a way I can convince them to waive it off fully or partly?

    1. I am not sure about that and I don’t think they will accept that as that is how bank is making money. But you should try your level best. 🙂

  24. Just sharing a point.

    If you would like to close the loan by giving cash please note that cash beyond 49,000/- is not accepted, So go with cheque/DD.

      1. You are welcome and I appreciate you for doing a great job by helping others.

        Can you add the following point in this post to calculate the interest to be paid for the days between EMI date and foreclosure date in addition to the foreclosure charges.

        EMI date is 5th, and you are closing the loan on 25th at that time lets say the principal remaining is 3,00,000/-, lets say interest rate per annum is 14%, then

        The interest for 20 days (5th to 25th) = 3,00,000 * (14 / 100) * (20/365) = 2301.3

        Hence the total amount you need to pay to the bank would be
        principal + foreclosure charges + service tax on foreclosure charge + interest for the balance days (which is calculated as above)

        Banks will squeeze every penny from the customer by not leaving at least one day interest.

          1. Please differentiate between Service tax on Foreclosure charges and foreclosure charges, because foreclosure mentioned above as 4% then what about the service tax on foreclosure charges how much it will be?

  25. Hi ,

    I want to close my Personnel loan with in one year for that I am ready to pay all interest and service Tax .because I have some medical emergency so can I close my personnel loan please suggest …

  26. hi this is kaviatha i taken personal loan in hdfc bank and is paid 6 EMIS AND I HAVE TO PAY REMAINING 6 EMIS.But now i am going to home loan and i am instreated to close personal now it self so plz give me some valuable suggestion

  27. I have taken loan from hdfc bank and paid 18 Emi now i want to foreclose my perosnal loan. They ask me to pay 4% on Principle Amount and service tax. My question is that service tax will be applicable on 4% charges or on the remaining principle Amount as 14.5% on Principle amount will be a huge amount for me???

    1. The service tax will be on the 4% of your principal amount.
      If your remaining principal amount is 1,00,000 then pre-closure charges will be 4% of 1 lakh = 4,000 + (service tax on 4000)

  28. Hi Santanu,

    If I am closing the personal loan in 1 year, do I need to pay the whole loan amount taken or can I pay the remaining amount paid after one year EMI.

  29. Thanks for sharing this.

    I need to close my personal loan quickly. please tell me how I can get the all the clearance documents of loan quickly.
    How long does it usually take for receiving all documents

  30. are you sure that we cant close through online.
    i have loan and hdfc account, there is an option saying payment of loan. please confirm.

    1. Hi Sanjay, I have shared my knowledge & experience. At the time I have closed my HDFC personal loan, there was no online closing facility. But right now there may be an option. If so, can you please share your experience here whether you are able to close HDFC personal loan online?
      Thanks in advance.

    1. I don’t think you will be able to close the HDFC loan before 1 year, as there is a clause for the same. Even if you close any loan earlier, you will be able to save the interest money only.

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  32. This is really a good information. However, I need a clarification on whether loan closure amount can be of paid using other bank cheques apart from HDFC. Awaiting for your reply.

  33. I have personal loan account in hdfc bank.i pay all emi’s on time. i have paid 5EMI till date. now i want to close my loan and i spoke to hdfc concern person he was saying u cn”t close you loan account before 1 year.
    they were also asking the justify reason for the same.
    Please help or suggest about the resaon.

    1. Yes, as Santanu said it is true and the same is applicable for CITI Bank and many famous banks as well.

      As per my knowledge only Axis bank does not have any such restrictions as on today (04-04-2016)

  34. hi santanu,

    i had applied for personal loan with hdfc bank (ludhiana) for rs.50,000. verbally they confirm me that it is for reducing rate of interest and i can repay after 1 year ( I also read your above mentioned article, it clear my many queries).

    plz confirm, it will on reducing rate (as they said at the time of apply). and can i repay the total amount after 1 year.

  35. I closed my HDFC Personal Loan today. They said it will be done in 2 days and they will destroy my cheques which I gave while taking loan and inform me after some days. Is that fine. Will they destroy them?

    1. Hi anil,

      I think nothing to worry. Make sure you have collected the personal loan closure note from the bank with all clearance done.

  36. Please follow this steps if you want to close HDFC personal loan this are some of the useful points you should know before closing a loan thanks for sharing this points.

  37. This is why we need to be careful and take advices before taking a personal loan this blog helps others who are going to apply a loan can go through this blog it has valuable information.

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