Do you have anything in writing that no foreclosure charges would be levied
2) if so complain to SBI ombudsmen regarding foreclosure charges
Penalty on pre-closure of personal loan
I had two personals loans for Amount of Rs. 14 lacs and Rs. 3 lacs approximately from one of the small branch of SBI(Branch-1) at RoI of 13.65%. The outstanding payment was approximately 9 lacs and 1 lacs respectively. 1. I have taken additional personal loan for Rs. 25 lacs with RoI 11.15% from another bigger branch of SBI(Branch-2) where i was told that there will be no penalty charges for pre-closure of loans as you are taking higher loan. 2. However, when i went to Branch-1 for pre-closure of loan after availing 25 lacs, I was charged penalty for the closure of previous loans. I have given application for reversal of penalty charges but no response till date. What is to be done ?
Asked 9 months ago in Civil Law
8 Answers
They can only charge for applicable foreclosure charges no other penalty
If they were competent to charge this penalty in terms of the loan agreement you signed with them, you’ve no case. So firstly, you must read the loan agreement first.
you will have to complain to the Banking Ombudsman
- As per the RBI, the bank should give proper time and offers for the settlement of loan amount. on the ground of health and sudden loss.
- If there is no written letter was issued by the bank for the penalty , then the bank can claim the same
- However, if you are going to settle the loan amount then bank must give property advantage to you
- You can send a legal notice to the bank and also file a compliant before the Ombudsman of RBI against that bank.
If you already hold an acknowledgement for your earlier written request, lodge your complaint with the Banking Ombudsman online immediately. Or else, please lodge your written request with the bank branch by Registered Post or Speed Post with A. D., asking them to reverse the pre-payment charges immediately. If you do not receive any reply within a reasonable time, you may complain to the Banking Ombudsman online.
The pre-closure charges are not penalty.
It is as per the procedures and ther terms and condition of the loan agreement which you accepted and signed.
The current bank which has granted loan will tell many pleasing things in order to do their business, but they will not commit in writing on this .
Unless and until there is anything committed in writing to waive the pre-closure charges, the conditions of loan agreement will prevail on this subject
Dear client, at first talk to the bank manager for resolution of the issue. If they are adamant then file a complaint in the RBI ombudsmen portal. And also as a legal remedy you can file a complaint on the bank in the consumer court.
