Kaagazaat

Part Prepayment Request Letter (Home / Retail Loan)

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Price
₹99 · GST included

₹99

GST included

Launch period: downloads are free for now. The prices shown apply once payments open.

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Whether you can fill this in here

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You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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Why you need it

When you need it

For when you've paid a lump sum against a loan's principal (bank, HFC or NBFC) and want the lender to apply it correctly and confirm the revised terms. States whether to REDUCE THE TENURE (same EMI, earlier closure — more interest saved) or REDUCE THE EMI (same end date, lower outgo); say nothing and the lender's own default applies. Also directs the payment to principal on the value date, states RBI's position on prepayment charges (no debit without written justification), and asks for a fresh amortisation schedule within a stated period. Don't use this if: payment isn't made yet; the borrower is a company/LLP/firm/trust/society/HUF; the loan was for business (different charge regime); you're foreclosing in full; it's dual-rate, under moratorium/restructuring, or NPA; or the lender isn't RBI-regulated.

See stamp duty, registration and witnesses

What follows is the position for this kind of document. The amount is set by the state the property is in and it changes, so the figure for your own state is worth confirming at the sub-registrar’s office before you pay anything.

Stamp duty

None — not an 'instrument' under s.2(14); no stamp/e-stamp/revenue stamp. Plain paper or letterhead. Caution: a supplemental agreement to record the revised EMI/tenure is separately stamped under your State's general agreement article (a few hundred rupees) — unless it varies the security, when the mortgage article applies; stays nominal if the secured amount doesn't increase. The lender's own receipt is the lender's stamping problem.

Registration

Not possible — ss.17/18 list the registrable classes; a payment letter falls in none. The mortgage/hypothecation is unaffected and continues as before; no land-record entry is made.

Notarisation

Not required — a notarial stamp achieves nothing and can slow the branch down. What matters: the signature matches the specimen on file, and the account number is on every page.

Witnesses

None — serves no purpose here. Only your signature (and co-borrower's) is needed on both original and duplicate; the stamped duplicate is proof of delivery.

Talk to a lawyer about this document₹3,539 including GST (₹2,999 + 18% GST), per documentRequest Stamp Paper

Sample preview — placeholder answers, not your data

PART PREPAYMENT REQUEST

Date: 4 April 2026
Place: Pune

To
The Branch Manager
HDFC Bank Limited
Retail Assets Branch, 2nd Floor, Sunrise Chambers, FC Road, Shivajinagar, Pune 411005

Mode of delivery: By hand, against acknowledgement

LOAN ACCOUNT NO.: HL/PUN/0043912
Customer ID: X
Borrower: Ananya Ramesh Deshpande
Co-borrower: X
Facility: Housing Loan — floating rate of interest
Sanction letter dated: 1 April 2026
Address on record: X
Mobile: X | Email: X

Subject: Part prepayment of ₹5,00,000 (Rupees Five Lakh only) towards principal — Reduce the tenure (EMI unchanged)

Dear Sir / Madam,

1. The payment.
I have paid ₹5,00,000 (Rupees Five Lakh only) to you as a part prepayment against the principal outstanding in the above loan account. X, the co-borrower on this account, joins in this letter and in the instruction at paragraph 3.

Date of payment: 2 April 2026
Mode of payment: NEFT
Payment reference: UTRN2409181234567

Principal outstanding before this payment: ₹25,000 (Rupees Twenty Five Thousand only) (as on 3 April 2026)
Current EMI: ₹25,000 (Rupees Twenty Five Thousand only)
Current rate of interest: 8.6% per annum
Instalments remaining before this payment: 163 instalments (13 years 7 months)

2. Where the money must go.
Please apply the whole of this amount to the principal outstanding, with effect from the date on which the funds reached you. Please do not hold it as an advance EMI, do not park it in a suspense, unapplied or unadjusted account (save as provided in paragraph 8 below), and do not appropriate it towards future instalments, towards interest that has not yet accrued, or towards any charge. Interest from that value date should be computed on the reduced principal.

3. My instruction on the revised terms — Reduce the tenure (EMI unchanged).
This is my express instruction. Please record it on the account and give effect to it. Please do not apply your standard or default option in place of it. The rate of interest on the loan is not to change as a consequence of this prepayment. If your system cannot give effect to the instruction as written, please tell me in writing before you process the account, and do not apply the prepayment in the other manner without my written consent.

4. What I need back from you, and by when.
Within 7 working days of the date of this letter, please send me — by email to X and by post to the address on record above:

(a) written confirmation that the amount has been applied to principal, with the value date;
(b) the revised principal outstanding after the prepayment;
(c) a fresh amortisation schedule for the balance of the loan, showing the EMI, the rate of interest, the number of instalments remaining and the date of the final instalment;
(d) confirmation of the revised EMI and the date from which it takes effect or, where the EMI is unchanged, the revised final instalment date; and
(e) if my existing NACH or ECS mandate has to be amended or replaced as a result, the form you require and the date by which you need it.

Until items (a) to (e) reach me, please continue to present the existing EMI as usual, so that the account does not fall into arrears through this request.

5. Prepayment charges.
My loan carries a floating rate of interest. I am an individual borrower and this loan was not taken for business purposes.

5.1 If you are a bank: no foreclosure charge and no prepayment penalty is payable on a floating rate term loan sanctioned to an individual borrower. RBI circular DBOD.Dir.BC.No.110/13.03.00/2013-14 dated 2 June 2014, carried forward in the Master Circular on Customer Service in Banks, states that bar without any qualification as to the purpose of the loan. If you are a housing finance company or another non-banking financial company: no foreclosure charge and no prepayment penalty is payable on a floating rate term loan sanctioned to an individual borrower for a purpose other than business — see the Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 dated 17 February 2021, and the Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 dated 19 October 2023.

Questions about this document

What does the Part Prepayment Request Letter (Home / Retail Loan) cost on Kaagazaat?

₹99, GST included.

Launch period: downloads are free for now. The prices shown apply once payments open.

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