Ankit
27 April 2018 at 23:30
I have an account with Oriental Bank Of Commerce with cash credit facility of 4.5 cr . In the sanction letter it is mentioned that prepayment charges of 2% will be charged one time in case of working capital loan is prepaid by the borrower for shifting to other bank / FI .
In this case my limit due date was for 26th April. I did not renew my limit and in advance gave a notice to the bank not to renew my limit because I will switch the bank. When today the other bank is ready to make payment of the used limit to my existing bank, OBC says that there is this clause and you need to pay the charges.
Please clarify the term of pre- payment in it. Right now they have stopped my DRAWING POWER.
So is it not wrong on the part of the bank to ask for charges. Kindly help me with the solution as I do not have to pay the pre payment charges
Pre payment charges on cash credit account
I have an account with Oriental Bank Of Commerce with cash credit facility of 4.5 cr . In the sanction letter it is mentioned that prepayment charges of 2% will be charged one time in case of working capital loan is prepaid by the borrower for shifting to other bank / FI .
In this case my limit due date was for 26th April. I did not renew my limit and in advance gave a notice to the bank not to renew my limit because I will switch the bank. When today the other bank is ready to make payment of the used limit to my existing bank, OBC says that there is this clause and you need to pay the charges.
Please clarify the term of pre- payment in it. Right now they have stopped my DRAWING POWER.
So is it not wrong on the part of the bank to ask for charges. Kindly help me with the solution as I do not have to pay the pre payment charges