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I will be applying for a car loan shortly, and trying to evaluate various lender schemes. I was not really sure when its mentioned as
No Pre-Payment Penalty or Foreclosure Charges
Let say I have an EMI of 1k. If at all I wish to pay a little more than that lets say 1.5k will I be charged? Or do I need to do it as part payment once in a while? On their brochure it does not mention any thing about part payment apart from what mentioned above.
If at all I wish to pay a little more than that lets say 1.5k will I be charged?
Generally this is not allowed in Car Loan. You will be giving post dated cheques or Auto Debit via ECS. So there is no mechanism to pay more EMI. EMI is automatically deducted.
do I need to do it as part payment once in a while?
Yes. Also note that most banks impose a minimum amount you can pre-pay. i.e. one cannot got an pre-pay Rs 100. Generally it is 3 times your EMI amount. But varies.
