POSTED BY September 21, 2014 10:43 pm COMMENTS (14)ON
I have availed a Loan against Property (Term loan with floating interest rates) from a ‘Private Housing Finance Ltd’. For the Loan, myself is the Borrower and my proprietorship firm has been made the co-borrower. Now for closing the Loan against Property account they are asking for Foreclosure charges upto 5.65% claiming that in my case “Firm” is a Co-borrower.
Kindly clarify whether the term ‘Firm’ in the above cited circular also includes ‘Proprietorship Firms’ also, since both the borrower and the co-borrower are ‘individual borrowers’ having no separate legal existence as in the case of a Company or Partnership Firm. Kindly issue a clarification for the same and kindly advice me on how to redress the grievance.