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?