foreclosure charges on Loan Against Property / Mortgage Loans
My Name is Akash and i am from Coimbatore. I have a query regarding my
Mortgage Loan, which i would like you to help me with.
I have a floating rate mortgage loan with Ge Money Financial Services
P Ltd now taken over by Magma Housing Finance.
My loan document states that there is a foreclosure penalty of 2% plus
service tax, subject to change as per company policy. I wish to
foreclose the same and they claim that it has been revised to 4% plus
service tax. It is more than 5 years since i have taken this loan and
when i asked them about the RBI directive of abolition of foreclosure
charges they say that it is applicable only on home loans and not on
mortgage loans, Is this true? If yes, then do i actually need to pay
the 4.49% as claimed by them? Please help.
Also for the past one year or so they have not reduced my interest
rate on the loan in spite of the reduction by RBI on 2 to 3 occasions.
Can something be done about this?
I would be very grateful if you can help me with my query.