Hi,
I have taken Rs. 3,00,000 Car Loan in March 2010 for 5 years with EMI of Rs. 6,500 form State Bank of India. After good salary hike in 2012, I started paying extra amount Rs. 8,000 (means total Rs. 14,500). Due to it now current outstanding loan is around Rs. 36,000 and on 2nd Feb 2013 I am paying all outstanding amounts.
By one enquiry, I came to know that as I am paying loan before decided tenure so bank will charge pre-payment penalty. As per my knowledge RBI instructed to all banks to stop taking pre-payment penalty on home loan and auto loan.
Bank is saying that RBI made this rule in 2011 so if loan was taken before 2011 then person has to pay pre-payment penalty. Is it correct?
Please let me know your thoughts.
Thanks
Paresh