Legal Question in Banking Law in India

thank you for your answer sir, but in this case we file a case against bank sir,we buy a sme loan for 7 years for rs 2,24,00,000. we pay monthly instalment of rs 4,00,000. now we go to other bank they paid all our loan amount .but the old bank says by pre mature of loan we pay 2.23%as penaltyof rs 4,24,000. they ask one month interest how i will pay .they didnt give any facility so we go to other bank .if filing case mean what case i file tellme sir


Asked on 6/27/15, 9:35 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

27.06.2015

Dear Sir / Madam,

The prepayment charges of 2.23% are on the higher side. You should request the Bank that since the prepayment settlement amount exceeds Rs. 1,00,00,000/- the prepayment charges should ideally be only 1% or maximum 1.5%. Filing a legal suit for this issue is not advisable nor recommended.

Regards,

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Answered on 6/27/15, 9:59 am


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