Banks levy charges or penalty if you want to close your loan account before it gets over. Why so? Banks should be happy as they are getting their balance money back without any trouble.Then why do they need to charge penalty? I hear RBI has asked banks not to charge forecloser penalty.Is it true?
It Pays you to remind/followup procedures around the last instalment. Same is the case for FDs, Money does not automatically come on maturity, in India, you need to follow up closely.
I have taken a home loan from a nationalised bank and I was not aware that I have also to close the account once I have paid the entire. I am grateful and thankful to rediff for giving these useful tips.
Re: closing of loan account
by common sense on Sep 16, 2009 04:03 PM
What do you mean you have not closed the loan account. If you have repaid the entire loan, you should go the branch immediately and and take back the original title deeds to your house. That is the most important document. Also you should obtain no dues certificate from the bank.
Re: Re: closing of loan account
by Ravindra Rao on Sep 16, 2009 04:14 PM
This does not happen with credit card. There is no automatic settlement. They keep on looting you under various pretexts. Credit card cos do not inform the user of the need to settle. At the start there is no mention of the need to settle. Even after the card validity expires and even though you do not make any purchases the co still sends bills. This is because they have outsourced the process to some ex-criminal who has now become white collared criminal
