aldrich (Partner) 21 May 2011
I took a business loan of 9lakhs 3 year back in Nov 2008. I need to forclose the loan now. What is the procedure for it, if we close the loan will be interest amount be saved. What is the penalty for prepayment of loan. Do we have to pay as one time or is there any option we can pay in 2-3 shots. 4 months installment is pending & the loan will get closed by 2011 Dec.
Regards.
Aldrich
RAJU O.F., (Advocate) 22 May 2011
For foreclosure you have to speak with the concerned bank/FI. Each bank may have its own rules and proceedures for premature closure of loans. Usually 1% or 2 % will be charged on the amount of foreclosure, in addition to penal interest for the defgaulted portion of the loan.
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