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Banks charging Pre payment charges for Cash Credit accounts of SMEs

181 views 4 replies

Mayank Maheshwari

4 Points Joined May 2017

Hello Friends,

Pls support with your views related to the subject above.

My straight forward question is, can a bank charge payment charges on a cash credit account after the expiry of a valid sanction letter, or the tenure of generally say 12 months from the date of sanction, as the case may be.....

thanks

Replies (4)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208770 Points Joined July 2016

If the credit facility expired, or not extended, then they should not charge...

Mayank Maheshwari

4 Points Joined May 2017

Thanks for your reply Sir....

But any guideline/notification which clearly states this that they should not charge....

It will be helpful...

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208770 Points Joined July 2016

There is no such guideline/notification. Banks have their own working instructions.

Check your original loan appraisal letter for any such charges. If no specific clause of any such charging, then in that case you can complain it to Bank's Ombudsman.

Mayank Maheshwari

4 Points Joined May 2017

Sir, the clause exists, but point is whether they can levy prepayment after expiry of credit facility.....
this needs to be still answered..... in legal terms, is this justified...?
I such thing levied, what's the procudue to sort...