POSTED BY May 14, 2014 3:18 pm COMMENTS (3)
ONHi,
I have personal loan with ICICI Bank for 15.5% roi and emi ends in Jul’15. I have some funds in hand and thinking to pre-close the loan for which they are charging 5% penalty.
Please advise if this is good to pre-close the loan or invest the available funds in FD’s/MF’s. I am looking for safe and conventional source of income and easy to withdraw on requirement.
Regards
Sarma US
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Dear Sarma, if you opt to repay the loan, how can you liquidate the same amount in case of any need?
Thanks
Ashal
Thank you Raja. The loan is taken for fixed rate of interest
If this is a floating interest rate personal loan, ICICI bank cannot charge any penalty on pre-closure now. Just last week RBI has come out with a notification that banks cannot levy any penalty for pre-payment or foreclosure of any kind of floating term loans. Give a copy of that notification to ICICI for their reference.
http://rbi.org.in/scripts/NotificationUser.aspx?Id=8868&Mode=0