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Bank loan


I have taken personal loan of Rs 5,00,000 from a Private Bank in the month of June 2012 for the period of One Year and i am regularly paying the installements. Now, I wanted to close the loan account and I have applied for same. But I have received a letter from bank mentioning that the bank is not ready to close the loan account before one year.

Kindly advise me now what step can be taken to close the loan account.


Sandeep Kumar Srivastava 


 1 Replies

V R SHROFF (Sr. ADVOCATE Bombay High Court Mob: 9892432152)     09 October 2012

If the terms and conditions of your Personal Loan clearly states u cannot close a/c or repay entire loan within 12 months, Bank is entitled to refuse. Why should Bank  Loose their Profit & interest. ??

Bank have to manage their finance also. You need to wait for the stipulated period of one year. 

However with mutual Agrrement, if both parties agree, can close a/c . 

I suggest to deposit ur  money in FDR for balance month/ with instructions to pay it on  dates of payment. IOt will give u  some relief against interest. 


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