Do I need to pay 2% penalty on LICHF loan

[samkapoor77]

I have 3 years old floating housing loan from LICHF. I wish to transfer my loan to SBI as I find LIC charging high rate of interest as compared to other banks and NBFCs. I know that pre-closure charges have been abolished by RBI but broker said that the provision doesn’t apply to LIC and I will have to pay 2% charges. What will you suggest me to do?

[samkapoor77]

Contact LICHF office directly without involving any middleman. Check with them if they can convert your loan to new reduced rates. In that case, you will have to pay conversion charges.

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