Karnataka Bank is charging 1% penalty on switching the home loan to Corporation Bank

POSTED BY harsha.sms ON December 2, 2014 5:08 pm ONE COMMENT

Hi, I am a salaried professional. I have home loan with karnataka bank of amount 47,00,000 (floating interest 11.50%).  I am paying EMI from last 16 months without any default.  The loan agreement signed in Apr/2012 did had a clause of 1% penalty for loan switch-over.

Now i want to move the loan to corporation bank since interest rate is 10.25% floating.  Now Karnataka bank is charging 1% penalty on outstanding loan amount.  Shall i file a complaint in consumer forum for this penalty?

Harsha

One reply on this article “Karnataka Bank is charging 1% penalty on switching the home loan to Corporation Bank”

  1. Hemanth says:

    No, you cannot. Generally, all banks charge penalty for switch over. As it is mentioned clearly in the agreement as well, you cannot complain to anyone.

    Better, speak to the branch manager and negotiate with him to reduce as much as possible.

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