FORE CLOSURE FROM NBFC BANK

1 year ago

Dear Sir, Have been sending reminders to NBFC BANK for FORE CLOSURE , but they did not reply even once hence have to keep you informed. Need a small advise how to go about it: My problem is given below:-
I had got a loan against business by hypothcating my house in april'22 for 12 years.
The terms of condition of NBFC bank are :-

1) have to pay loan EMI for 18 months (lock in period)
2) NO FORE CLOSURE within Lock in period (not mentioned oraly)
3) FORE CLOSURE CHGS OF 4% + GST in case of FORE CLOSURE done after clearance of 18th EMI upto the entire tenure.
4) No Part Payment allowed in first 18th month.

My question, if i want to FORE CLOSE this loan account and want to shift to another bank which is ready to provide me DOD (Dropline over draft) at much smaller rate of interest. I have even got same sanctioned , but NBFC bank not willing to provide me FORE CLOSURE even after willing to pay 4% charges. Please advise how can i get FORE CLOSURE LETTER FROM NBFC bank as their interest has shot up by more than 2% since april'22. Also it is becoming difficult to pay installments. Understand, today RBI has once again hiked REPO RATE , which will add to my cost.

On top of that they have withold 4 years installments of apx. 4.00 lacs in case i am unable to pay.
Also they have done insurance of loan . In total they have kept rs. 10.00 lacs for which i am paying interest.


Your suggestion or solution will be highly appreciated as am not willing to carry on with NBFC BANK and want to shift to another bank for Overdraft account.
How can they bind anyone or keep them as slave just because they have sanctioned loan. They have receovered Processing fees of 1.25% and additional charges too. this is just like Zamindari system prevalent in villages .


My EMI track record is perfect till date. I have paid (auto debit) for last 7 months regularly.

Kindly advise

rgds