Prepayment of House Loan

Dear Pankaj,

I took a housing loan of 16.32 lakhs in 2008. Currently the outstanding is around 15.84 lakhs. I took the loan for a house which I am planning to sell now. The buyer who is going my house is going to make the full payment of the loan in order to get the agreement papers. For prepayment of the loan whoever pays the loan (whether it is myself or the buyer) , the bank is charging me 2% of the full amount and it is saying that this is as per the latest government rules which came into force just now. Now my question is when the buyer is giving the money from his bank through a cheque which is monitored by the Income Tax and government officials, why is the bank charging me 2%

Thanks & Regards, Nitin Rao Chandavar

asked Jun 11 '11 at 15:28 by Nitin Rao 1333

Most of the banks have prepayment penalty of 2% (on outstanding principal) if loan is closed before end of term.

This should have been mentioned in loan documents you must have signed. It should have been taken into consideration while applying for loan.

answered Jun 13 '11 at 11:36 by Pankaj Batra 5.2k320


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Asked: Jun 11 '11 at 15:28

Seen: 1,619 times

Last updated: Jun 13 '11 at 11:37