Pre EMI chargeable on daily closing basis or for entire month ?

POSTED BY j_tripathy ON December 10, 2013 10:39 am ONE COMMENT

Hi,

I am making a balance transfer of my partly disbursed loan availed from GIC Housing to HDFC. Pre EMI interests are payable on the 1 st day of every month. I have handed the Cheque paid by HDFC in favour of GIC in the first week of this month. However, GIC is asking for additional amount towards Pre EMI payable at the end of this month now itself. They say that after 1st of every month, whenever a loan is closed or taken over, as per rules and regulations, the interest is applicable for the entire month even if the loan is paid off before the end of the month.

Is the Pre EMI interest claim of GIC Housing Finance justified and is backed by rules and regulations of regulator RBI/NHB? Can I challenge GIC for breach of regulatory norms?

One reply on this article “Pre EMI chargeable on daily closing basis or for entire month ?”

  1. ashalanshu says:

    Dear I tripathy, please read your loan agreement’s prepayment clause for clarification. If the agreement says so, you w’d ahve to pay.

    thanks

    Ashal

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