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This has referral to the RBI circular of August 02, 2019 on ‘Levy of foreclosure charges/pre-payment charge on drifting rate term loans’, mandating that NIL foreclosure or pre-payment charges will be imposed on floating rate term loans sanctioned to Individual customers with/without co-borrower( s) for the functions other than for company.
Accordingly, this is to inform you that, regardless of anything consisted of in the Transaction Documents, for Individual borrowers who has availed loan for organization function and for Non-Individual debtors, foreclosure charges will be suitable based on the rates recommended by the Bank from time to time. The current relevant rates of prepayment charges are offered listed below for your all set recommendation.
Loan Against Residential or commercial property
Fees & Charges
Part Pre-payment/ Foreclosure Charges (For Individual Borrowers with function besides service)
NIL
Part Pre-payment/ Foreclosure charges (For Individual debtors with organization purpose/ all Non Individual customers/ fixed rate loans)
- 5% on part pre-payment amount/principal impressive if paid within 12 months
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