Legal Question in Banking Law in India
A Fixed Deposit Holder came to foreclose the FD against which 80% loan has been allowed. Being a bank employee what procedure shall I follow in respect of allowing and accepting interest? FD was issued offering interest @10% for 5 Years.Loan against Term Deposits was given to the Depositor with interest @11% . Application for premature closure and squiring off loan came after 3yrs of purchase of said FD. on the date of purchase rate of deposits for 3yrs was7.25%
Asked on 6/29/11, 9:41 am
1 Answer from Attorneys
J. Radhakrishnan
independent Practice
Normally in the case of bank employees, the rate of interest on the loan is the same as on the F.D. If you prematurely close your deposit, the bank may adjust the proceeds on the same amountof interest as applicable for the deposit. Check with your bank before you do.
Answered on 6/30/11, 7:55 am
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