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SAM KOSHY
(Querist) 23 June 2013
This query is : Resolved
Sir,
No loan pre-closure charges in State Bank of India & State bank of Travancore.
Suppose a borrower availed a loan from State Bank of Travancore for 10 years. Suppose he paid back the entire loan amount
within 5 years. In this cas, is it necessary to pay back the loan interest payable for the full term (10 years)? Please reply.
Sam
Rajendra K Goyal
(Expert) 23 June 2013
No, State Bank of India charges interest for the period the money was used actually. Same is the case with SBT.
Raj Kumar Makkad
(Expert) 23 June 2013
Such pre-clearance charges have been vanished by both banks.
Devajyoti Barman
(Expert) 24 June 2013
he is to oay the balance amount. For initial few years bank adjust EMI on account of interest only, not on principal. So after five years only the principal amount left, the most part of 10 years interests must have been adjusted by that time.
Rajendra K Goyal
(Expert) 24 June 2013
Banks are debiting the periodical interest in the account thus adding in the total outstanding(debit balance), any deposit is credited in the account(whether EMI or any extra deposit other than EMI) i.e. subtracted from the total outstanding. On closure of the account net outstanding in the account is recovered. No interest for the remaining period is debited at the time of closure of the account (except between last interest debited and day of closure).
malipeddi jaggarao
(Expert) 24 June 2013
No is the correct answer.For that matter any bank can not demand the interest for the total pre-determined tenure. They can only charge pre-closure charges which are definitely lesser than this interest. \in the referred case as no pre-closure charges are mentioned in the sanctioned terms, no charges also can be levied.
ajay sethi
(Expert) 24 June 2013
agree with experts
