Ask The Readers: Can You Make Part Prepayments On Your Car Loan?

by Vinaya HS on June 25, 2010

in Finance

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I have a question:

In general, is it possible to make part prepayments (towards the outstanding principal) on your car loan? My specific situation: a car loan from Axis Bank that I intend to close by the end of this year.

If the answer to my question is a YES, how do I go about doing it?




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{ 3 comments… read them below or add one }

Vinay June 30, 2010 at 2:34 AM

Dear Vinaya- prepayments are possible. All you need to negotiate well with Axis Bank. If they say No, just move to a bank which encourages prepayments for car loans. I hold a car loan from SBI jayanagar 3rd block. They encouraged me to do prepayments.
Good Luck!

Vinaya H S June 30, 2010 at 5:25 AM

Will try my luck.

When you do a prepayment, do you send in a check and specifically ask for the amount to be fully applied against the outstanding principal? Does SBI give you a new Loan Amortization Sheet once the prepayment has been credited?

Vinay June 30, 2010 at 8:28 PM

Absolutely right. Yes again for loan amortization sheet. Good Luck Ya!!

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