Need A Financial Product Forums Loans Despite RBI guidelines, why Syndicate Bank is charging foreclosure charges

This topic contains 1 reply, has 2 voices, and was last updated by  Shyam Lal Chauhan 3 years, 5 months ago.

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    In 2008, I took home loan on floating rate of interest from Syndicate Bank. But now I am interested in transferring it to SBI max gain. As per the loan agreement with Syndicate Bank, I need to pay them 1% as foreclosure charges on transferring my loan to any other bank. But as per RBI guidelines, pre-payment charges have been abolished. Is this provision of RBI provision not applicable on transfer of loan?


    Foreclosure charges are still applicable on loans with fixed rate of interest. For loans with floating rate, it has been abolished.

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