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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 


 4 Replies

VINOD VERMA (C E O)     30 September 2012

Private banks do not allwo foreclosures, b'coz when ever you take loan, either through some Direct Market Agent or even direct, the bankers (private) give out big commisssions, as such they are not willing to accept pre payment. Would be better for you to invest the money for an earlier in some good return debit or equity and repay the amount after one year. I doubt even after one year they will accept forecloser without fore closer charges. The other remedy is to approach the Banking Ombudsman in your area and seeking their help, explaining them the reason why you want to repay the loan immediately. By the way you are lucky that you have got loan, most of the people are denied loans by private banks  on filmsy grounds


Deposit the balance amount and ask in writing to intimate the interest due, if any to be paid by you.

VINOD VERMA (C E O)     02 October 2012

depositing the balance amount and then asking to intimate the interest will never go in your favour, because once the amount has been paid back, they would get the right to say that yours is a foreclosure and the documents signed by you must be having a foreclosure paenalty embeded in them, may be in fine print, check this thoroughly. 


Thanks to all

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