Bank charged penal interest

nemish jain (Querist) 23 June 2015 This query is : Resolved
sir,

i am a small businessmen,
and is working in scrap business

I took a bank Loan from a concerned bank,which included the terms that

you r not supposed to operate with other bank except the concernced bank Account from were i took the loan

i had an bank to be dealt for my inter bank transactions.
the bank noticed from my balance sheet that

i had some other bank besides the concerned bank

so they charged me the penal interest @ 2percent on loan account

pls help me to deal it for refund

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KUMAR JAGADEESAN (Expert) 24 June 2015
Dear Mr.Jain

Normally all Bank loan documents contain similar clause for not having any other account.This is the first time I hear that the Bank is charging penal interest for such act. Please go through the Bank loan sanction letter and see whether levy of penal interest is mentioned clearly for operating another bank account.

SO long as you are servicing the bank loan promptly by paying interest and installment the Bank are not keen to object. You can explain reasons to the Bank for necessitating such another account ( like nearness of the other Bank to your factory/office, for ease of payment of salary since many employees have accounts in the new Bank and such other reasonable explanation) and request them to drop the additional levy and credit back the excess interest to your account. There may be a case where the Bank account with another Bank is much older than the loan account with the Bank. If you still have grouse pl make an application to Banking Ombudsman in your area.

J.KUMAR
Advocate
Hyderabad

ADV-JEEVAN PATIL, MUMBAI (Expert) 24 June 2015
Binding borrower to deprive borrower from transacyingt with other bank is restricted policy & they cannot mandatorily chag penal interest. If so agrieved contact me on 9869400938 Email:.jeevansci@yahoo. com