Prepayment charges for overdraft account
Amit
(Querist) 10 November 2015
This query is : Resolved
I am availing Overdraft facility from Axis bank for last 6 years. Before my renewal of facility in Aug 2014, I have asked for enhancement of credit facility. Initially bank told me that they will do it, but in August 14 , I have got the sanction letter for renewal of the facility at same level. So, next year I have approached another private bank and got the sanction for enhanced amount with low interest. So, on 1.11.2015, my new bank has made the entire payment of outstanding with Axis Bank and CC facility of Axis bank has been zeroized. Till now I have not received and communication from Axis, but when I went for the closure of my account, they are asking for foreclosure charges. And, they are saying that your facility was renewed but, I have not received any intimation for the same.
My concern is that:-
1) Can they charge foreclosure charges for the CC facility, in my case ? Since, I have not been intimated for the renewal of the facility.
2) Also, I have fully utilized their facility during last year.
rajagopal.s
(Expert) 10 November 2015
Hi
Normally when the loans are taken over by another bank, the current bankers charge foreclosure charges. You need to negotiate with Axis bank for waiver of foreclosure charges(it is legal to levy foreclosure charges but it is the discretion of the bank to waive it off).
Rajendra K Goyal
(Expert) 12 November 2015
When the limit was renewed by Axis Bank and for what period?
Have you requested for renewal and have submitted related papers i.e. balance sheet etc.?
Whether foreclosure was one of the terms in the agreement?
Write to Axis Bank, take up with higher authorities and in case of need move to consumer forum.
If prefer move to public sector Bank for better transparency.
Amit
(Querist) 04 February 2016
I am availing Overdraft facility from Axis bank for last 6 years. Before my renewal of facility in Aug 2014, I have asked for enhancement of credit facility. Initially bank told me that they will do it, but in August 14 , I have got the sanction letter for renewal of the facility at same level. So, next year I have approached another private bank and got the sanction for enhanced amount with low interest. So, on 1.11.2015, my new bank has made the entire payment of outstanding with Axis Bank and CC facility of Axis bank has been zeroized. Till now I have not received and communication from Axis, but when I went for the closure of my account, they are asking for foreclosure charges. And, they are saying that your facility was renewed but, I have not received any intimation for the same.
My concern is that:-
1) Can they charge foreclosure charges for the CC facility, in my case ? Since, I have not been intimated for the renewal of the facility.
2) Also, I have fully utilized their facility during last year.
Amit
(Querist) 06 May 2016
I am availing Overdraft facility from Axis bank for last 6 years. Before my renewal of facility in Aug 2014, I have asked for enhancement of credit facility. Initially bank told me that they will do it, but in August 14 , I have got the sanction letter for renewal of the facility at same level. So, next year I have approached another private bank and got the sanction for enhanced amount with low interest. So, on 1.11.2015, my new bank has made the entire payment of outstanding with Axis Bank and CC facility of Axis bank has been zeroized. Till now I have not received and communication from Axis, but when I went for the closure of my account, they are asking for foreclosure charges. And, they are saying that your facility was renewed but, I have not received any intimation for the same.
My concern is that:-
1) Can they charge foreclosure charges for the CC facility, in my case ? Since, I have not been intimated for the renewal of the facility.
2) Also, I have fully utilized their facility during last year.
