Credit Guarantee Fund Trust For Micro And Small Enterprises CGTMSE

Foreclosure Request

You can conveniently place a foreclosure request through InstaServices, eliminating the need to visit a branch. The process is simple, quick, and can be completed online in just a few steps. This ensures a seamless and hassle-free experience while managing your loan closure.

CTA: Foreclose via InstaServices | Log in to NetBanking | MobileBanking

Understanding Loan Foreclosure

It is a facility that lets you repay your remaining loan balance in one go, including any applicable foreclosure charges. Once processed, your loan account is closed, and you are no longer liable for future EMIs.

Here are some of the benefits of reactivating your dormant account:

  • Save on Interest: Reduce the total interest outflow by closing the loan early

  • Debt-Free Sooner: Achieve financial freedom without waiting for the full tenure

  • Improved Cash Flow: Free up your monthly income by eliminating EMIs

  • Better Credit Profile: Timely foreclosure can positively impact your creditworthiness

  • Peace of Mind: No ongoing liability or repayment stress

  • Note: Foreclosure charges and terms may vary based on the loan type and lender policies.

Prerequisites for Activating Dormant Account

Basic Requirements:

  • You are 18 years or older.
  • You are a Resident Indian Individual or an Authorised Signatory (AUS) of an Entity with an active Savings/Salary/Current Account, Credit Card, or Loan with HDFC Bank.
  • You have your Aadhaar Number ready for KYC.
  • You have your Debit Card/Credit Card/NetBanking details for identity verification.
  • Your bank-registered mobile number is Aadhaar-linked and active for OTP.
  • (Residents only) You may also activate any singly held dormant accounts via Video KYC (VCIP) during the process.

Resident Individuals (Saving Account):

  • If you have at least one active account, you can activate your singly held dormant Savings Account digitally via Aadhaar eKYC (OTP based KYC) + Video KYC.
  • You can also submit a physical form at the branch with your KYC documents.
  • Activate Online | Download Form

Resident Individuals (Joint / Current Account):

Non-Resident Indians (NRIs):

  • NRIs can activate their dormant account by visiting the branch with the Dormant Activation Form and KYC documents of all holders, or courier self-attested notarised copies with the form to the branch.
  • Locate Branch

All Other Constitutions:

  • Sole Proprietorship, Partnership, Pvt/Public Ltd, LLP, HUF, TASC and other entities must download the Dormancy Activation Form and visit the branch with the required KYC documents.
  • Download Form

Documents Required to Activate Dormant Account

Resident Individuals (Savings Account/Joint Account/ Current Account)

  • Aadhaar card / e-Aadhaar (within 30 days) / Biometric or OTP-based e-KYC
  • Valid Passport
  • Valid Permanent Driving Licence
  • Voter ID (Election Commission of India
  • Additional Annexures may be required in case of accounts held at joint capacity
  • Click here to view more.

Non-Resident Indian

  • PAN
  • Form 60 (if PAN is not available)
  • Latest passport-size photograph
  • Click here to view more.
  • Click here to view the list of acceptable OVD.

All Other Constitutions

  • ReKYC Form + CKYC Annexure
  • Click here to view more.

    How to Foreclose Your Loan Online

You can initiate a Loan Foreclosure Request through any of the following channels:

 

  • Website >> Need Help >> Loan Services >> Select Loan Type >> Manage Your Loan Account >> Manage Your Loan
  • NetBanking > Active Loan > Select the service
  • WhatsApp Banking > Send ‘Loan Services’ from your registered mobile number > Select the service > Select the loan
  • Mobile Banking > Select active loan > Download required service document

Via InstaServices:
 

  • 1. Enter Registered Mobile Number 

    Visit InstaServices, enter your registered mobile number, complete the captcha, and confirm it is linked to your loan account.
  • 2. Verify with OTP 

    Enter the OTP sent to your registered mobile number to securely log in.
  • 3. Select Loan Account 

    Choose the relevant loan account from the list of active loans. Confirm your email ID, city, and preferred branch details.
  • 4. Choose Service Request 

    Under ‘Select Request’, click on Foreclosure Request and proceed.
  • 5. Review Foreclosure Details
  • Check the foreclosure amount, including applicable charges such as prepayment fees.
  • Select a reason for foreclosure and choose your preferred payment mode (online payment or cheque/demand draft).
  • In case of cheque/demand draft visit the nearest branch to process your request.
  • 6. Additional Preferences 


    Indicate whether you are interested in other products (optional) and add remarks if required.

  • 7. Accept Declaration 


    Review and accept the terms and conditions to proceed with the request.

  • 8. Submit Request 
     

    Once submitted, a Service Request Number is generated. 

    And you have an option to make the payment via link by “Click here” option on Thank you page or link will be shared via SMS 

    You can complete the payment using NetBanking, Debit Card, or UPI via the provided link.

     

    • Important Notes
     

  • The payment link is typically valid for 5 days.
  • The request is processed within 2 working days after payment is received.
  • Ensure your transaction limits are sufficient for smooth payment processing.

Frequently Asked Questions

A loan foreclosure request allows you to repay your entire outstanding loan amount in one go, including applicable charges, and close your loan account before the end of the tenure.

Yes, you can submit a foreclosure request online via InstaServices by verifying your mobile number with OTP, selecting your loan account, and choosing the foreclosure option.

You need your registered mobile number, access to OTP verification, and basic details such as your loan account selection, email ID, city, and branch preference.

The foreclosure amount includes your outstanding principal along with applicable charges such as prepayment or foreclosure fees.

You can complete the foreclosure payment using NetBanking, Debit Card, UPI, or opt for cheque/demand draft, depending on your preference.

The payment link provided after submitting the request is typically valid for 5 days. The foreclosure payment link is refreshed on a daily basis, as per day interest is added.Accordingly, the total foreclosure amount is subject to change.

The request is usually processed within 2 working days after the payment is received.

Yes, you are required to choose a reason such as surplus funds, loan consolidation, or other applicable options while submitting the request.

Once your foreclosure payment is successfully processed:

  • Your loan account will be closed 
  • Auto-debit instructions will be cancelled 
  • A No Objection Certificate (NOC)/No Due Certificate/Closure letter will be issued

If your next EMI is already scheduled in the banking system before the Loan is foreclosed, the EMI may still get presented on the original due date.

In case the EMI is presented it will be refunded back to your repayment account within 7 working days.

Yes. HDFC Bank will issue a No Objection Certificate (NOC) after successful loan closure for Auto Loans, Two-Wheeler Loans, and Commercial Vehicle Loans.

In selected states, the NOC is issued digitally directly to the Regional Transport Office (RTO), and a physical copy will not be dispatched.

For all other states, the physical NOC and Form 35(if applicable) will be sent to your registered address within 10 days from the date of loan closure.

You can view the list of states where digital NOC issuance is applicable  [here]

After successful closure of your Auto Loan, Two-Wheeler Loan, or Commercial Vehicle Loan, HDFC Bank will issue:

  • No Objection Certificate (NOC)

  • Form 35 (where applicable)

For Business Loans, Personal Loans, and Consumer Durable Loans, the Loan Closure Letter can be downloaded through Digital Loan Services after 2 working days from the date of loan closure.