I borrowed 96 Lakhs from him But now he want all the EMI

Q: After borrowing with the agreement to payback yearly 5% for 7years
Is now not up to 2years I want to pay him back but he is asking for The full 7years EMI I'm loosing facts to this subjection Please is this right?

Dr Maxwel, Mumbai

26th February 2017

Home Loan in Bhopal

personal loan

pre-payment

pre-payment charges

is pre closure allowed in personal loans?

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Replies (3)

Hi Dr. Maxwell,
Most banks have a lock-in period of 6 months to a year. Some of them allow you to pre-close even after the 1st EMI have been debited from your bank. Sometimes some of the banks tend to allow pre-closure at no cost or charge a pre closure fee. You need to clear all these doubts with the bank's’ loan adviser before signing the loan document.

Ashish Sharma, Mumbai

6th March 2017

Comment

Yes, there is another way which is known as "Loan Closure by Prepayment". It is an alternative way to close a loan is by prepayment. When the complete amount of your loan account is paid before the end of its tenure, it is known as prepayment. In order to adopt the prepayment method, you the following specifics have to be taken care of.
Preferably, the prepayment is done by visiting the bank personally. You will need to carry your bank statement which will have a record of the last EMI’s payment transaction. A letter needs to be requested that has to have the signature of the loan applicant, PAN card details and the amount that has to be paid.

Vinay Dixit, Mumbai

6th March 2017

Comment

Hi,
It is required to ask for a future date pre-closure statement. After that a cheque has to be signed for that particular amount and thus the closing of your loan will be done successfully. After giving the cheque, the bank will provide with an acknowledgement. This has to be kept securely till the loan gets closed.

Ravi Waghmare, Mumbai

6th March 2017

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