How does Smart LAP work?

Your outstanding loan amount appears as a debit balance in your Smart LAP account. Interest will be calculated on this debit balance amount in the account on a daily basis, i.e. if you pay an excess amount over the EMI, the excess amount will remain available for your use in the Smart LAP account, and at the same time it helps save greatly on your interest payment. In addition to interest saving, this facility also provides you with complete flexibility to operate the Smart LAP account as your main banking account i.e. deposit and withdraw funds as per your cash flow and requirements. You will get access to this account through a cheque book, debit card and internet banking.

How do you repay the loan?

You repay the loan by depositing at least the EMI amount into the Smart LAP account every month.

How do you repay the loan sooner in Smart LAP?

You pay the EMI every month which consists of Interest and Principal component. Any excess deposit in the account over and above the EMI will help you to save the interest payment. This will lead to lower interest component in the EMI and thereby higher amount going towards the principal repayment and help you pay your loan off faster.

Are prepayments allowed on Smart LAP?

Yes, prepayments are allowed. For this, you must issue written instructions to the Bank stating that you wish to reduce the loan amount. You can prepay upto a maximum of 25% of your loan outstanding once every financial year without charges. For amount in excess of 25%, a prepayment charge of 4% shall be levied. Prepayment is permitted after a minimum of 6 months following disbursal of the loan.