DHFL converted my home loan to commercial loan and now asking for preclosure charges !

POSTED BY rajgupta101 ON December 5, 2013 9:41 pm COMMENTS (2)

Dear Sir,

I took plot loan in May 2009 from DHFL and recently got possession from builder (before 2 months). From this month, they have raised interest rate from 11.75 to 13.75% because they are telling since no construction from three years hence we’ll charge commercial rate of interest.

I decided to move from DHFL to LIC and now DHFL is asking 3% as Prepayment clouser charge, because my loan is converted from Plot loan (Home loan) to commercial loan. Please advice, do I need to Pay pre closure charge to DHFL at the time of transfer of loan to LIC.

2 replies on this article “DHFL converted my home loan to commercial loan and now asking for preclosure charges !”

  1. Credexpert says:

    Dear Mr. Gupta,

    We would suggest that you carefully read the terms and conditions of the loan agreement, in specific to a plot loan being converted to a commercial loan due to no construction for a period of time. Do you need to pay pre-closure charges, will be more specifically mentioned in your agreement which you have signed with DHFL.

    When you are shifting your loan from DHFL to LIC make sure the interest terms are favourable to atleast 1 % less then the existing loan. We would request you read LIC terms before signing the agreement so that you don’t end up into a similar situation like DHFL.


    1. rajgupta101 says:

      Thanks for your guidance.

      Raj Gupta

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