HELLO, I HAVE CC LIMIT WITH KMB ( kotak mahindra bank) SINCE 2011 IN WHICH IN SL ITESLEF FORECLOSURE CHARGES WERE SPECIFIED AS 4% IN CASE OF CLOSURE IN 6 MONTHS , 2% IF CLOSURE BETWEEN 6-12 MONTHS AND 1% IF CLOSURE IS AFTER 12 MONTHS. MY CC LIMIT ALONG WITH LC LIMITS WERE ENHANCED EACH YEAR AND IN 2015 MY FINAL CC WAS 5 CR AND LC/BC WAS 11 CR. THE FORECLOSURE CHARGES WERE NOT MENTIONED ON SL AND UNDER STANDARD PENALATIES IT IS MENTIONED THAT CHARGES WILL BE AS PER MASTER FACILITY AGREEMENT. IN AUG 2015 WE ASKED BANK TO REDUCE RATES AS WE WERE GETTING BETTER RATES ON ALMIOST ALL SERVICES ON WHICH WE WERE TOLD TO CHECK WITH OTHER BANKS. IN NOVEMBER 2015 WE WROTE TO BANK AGAIN THAT WE WILL PAY ALL OVERDUES BEFORE RENEWAL ON 15 JAN AND BANK WILL RETURM[N ALL PROPERTIES TO US FOR WHICH THEY EVEN DID NOT REPLY. ON DEC 2015 WE SHIFTED MAJOR OPERATIONS TO OTHER BANK AND SUBMITTED 100 PERCENT OF PAYMENT. AND ASKED BANK TO PROVIDE NO DUES CERTIFICATE. KMB TRIED TO WIN US BACK AND EVEN OFFERED MUCH LOWER RATES THAN NEW BANK BUT WE REFUSED. FINALLY KMB ASKED ON 30 DEC TO ITS SERVICE DIVISION TO START CLOSING PROCEDURES. TO MY SUPRISE BANK ASKED FOR 4 % FORECLOSURE CHARGES ON 22 CR ( 5 CR CC + 11 CR LC + FORWARD FACILITY ) THOUGH I HAVE TOTAL LIMIT OF 16 CR. MY LIMITS WERE ACTIVE TILL JAN 15 AND WE HAVE DONE SOME BANKING TILL JAN 15 ALSO.
PLS ADVISE.
