Edelweiss finance is charging Prepayment charges when we want to foreclose loan ?

POSTED BY naman shatma ON May 27, 2014 9:30 pm COMMENTS (2)

We have taken loan against property from edelweiss now we want to make prepayment of the loan but they are charging prepayment penalty on it. Can you tell us that edelweiss can charge the penalty after the guidelines of RBI been published.

2 replies on this article “Edelweiss finance is charging Prepayment charges when we want to foreclose loan ?”

  1. TheZionView says:

    edelweiss is a NBFC their regulator or fair code of conduct checked is National Housing Bank NHB

    NHB has issued not to collect any pre closure charges of a home loan if the source of income is not from another bank loan.

    So you can take the notice from NHB and also the notice from RBI to the company and tell them as per these they are not supposed to charge any fore closure charges, if they insist ask them to provide calculation for foreclosure in their company header or by email from company emailbox take that to omsbudban

    in most cases once talk to higher authorities its is resolved.

  2. Hemanth Chandra says:

    In the below article, it is given that the penalty is not there for the preclosure of home loans. Don’t know about your loan.

    http://www.itsallaboutmoney.com/banking-products/loans/myths-about-home-loans/?utm_source=Newsletter29&utm_medium=Email&utm_content=Myths%20about%20Home%20Loans&utm_campaign=21thMay2014

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