Insta Loan by HDFC is a great financial product that makes funds accessible to its customers within minutes. The product comes pre-approved and is limited to its existing customers. However, the pre-approved limit depends on the income, repayment potential, and credit history of the applicant. The loan is quite convenient to avail of and can be repaid in Equated Monthly Installments over the tenure period of the loan.
However, if your Insta loan has been sanctioned within your HDFC credit card limit, your credit limit will be blocked by the bank and in that case, your loan EMI will become a part of your credit card bill.
Apart from the convenience in availing the loan, these loans are quite convenient to close as well. This is because HDFC Insta Loan can be closed before maturity as well.
Benefits of closing Insta loan before the scheduled tenure:
- If you close your Insta loan before the scheduled tenure you save a lot of money that you have paid towards the interest component of the loan.
- Closing a loan before the scheduled tenure always gives you satisfaction and mental peace.
- The saved money can be invested and more money can be earned from the same.
- Ending a loan before tenure also helps you to focus on other priorities/goals in life.
How do you close HDFC Bank Insta Loan?
To close an HDFC Insta loan before the tenure period you need to make prepayments. Making a prepayment means you are paying the outstanding loan amount in full before the maturity of the Loan.
However, for the pre-closure HDFC charges you a prepayment fee of 3%, which is charged on the outstanding amount and needs to be paid along with the prepayment amount.
Reduces your debt burden
So, whenever you have sufficient money, you can pre-pay your Insta loan before the loan tenure ends. Well, you also have an option to part -pay your loan but you need to check with the bank. Just have a word with your bank and you can start the process. Remember the pre-closure facility always reduces your debt burden and hence is a good option when you have adequate funds with you.
Things to do after your HDFC Insta Loan closure
When repaying the loan in full, you need to collect a No Objection Certificate (NOC) from the bank. For this, you need to ask your bank so that they close your loan account and report it to the credit bureau at the same time.
The NOC saves you from the wrong reporting to the bureau and helps to improve your CIBIL score as well. A wrong update to the bureau can not only affect your CIBIl but can also affect your future creditworthiness.