Housing loan pre-closure

999 views 2 replies

Hi friends,

 I have taken housing loan of 10 laks for a period of 10 years from Federal Bank and started repayment of EMI RS. 20,000/-from July 2008. My present balance is Rs. 540439/-, I wish to payback this amount and close the loan in July 2012 with a restructured EMI. Please advice me, whether the Bank has any right to reject my application to close the loan before the scheduled closer period and whether the bank can ask for preclosure/prepayment penalty? If the penalty is applicable how much the bank can demand? By expecting replys,

Pramod Kumar

Replies (2)

U may try

https://www.finaid.org/calculators/prepayment.phtml

You may refer the loan agreement documents for the prepayment penalty clause as it may vary from bank to bank. Generally it will be 2% of the prepayment amount.

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