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Date : Mar 26, 2009


I have taken a car loan during Dec.2007 with EMI Rs.10255/= pm from ICICI. for 36 months. ICICI charge 5% penalty for short closure of the loan , for which I have funds now. Kindly advise whether I keep the cash in my SB a/c and continue EMIs or short close the loan. thanks


If you think the interest rate of your loan will increase then since you have funds you should close the loan and as you know you will have to pay a prepayment penalty to close the loan.



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