Banks charging Pre payment charges for Cash Credit accounts of SMEs

This discussion explores whether banks are legally permitted to charge prepayment fees on SME Cash Credit accounts once the sanction letter or the standard 12-month tenure has expired. While there isn't a specific regulatory guideline, the consensus suggests that charges should not be levied on an expired facility. Participants are seeking clarity on the justification for such charges and the procedure for resolving disputes, potentially involving the Bank Ombudsman if no specific clause in the loan appraisal letter permits it.