The Banks charge some penalty if borrower repays full or part of the loan before time (to be clear I am not talking about EMI payment). Repayment could be good for the borrower if he receives some surplus funds which he does not need because by repaying the loan he can reduce his EMI or lower the interest on his loan. But this is kind of optional which a broower may opt for or not.
On other hand, if the person wants to sell the property and there is loan on the property then it is must, I guess, to settle/repay the loan before property can be sold. So I want to know if borrower has to pay penalty even in this case of repayment. This case of repayment is MUST.
Well, I want to sell the property and have no problem to repay my loan but why should I pay the penalty.
Will I have to may penalty in my case?
CAclubindia
