Are prepayment charge applicable on plot loans at floating rates?
I took a residential plot loan at floating rate from HDFC about 6 years back . I'm now doing a balance transfer to another bank , but HDFC tells me that since it is a plot loan and there has been no construction on the plot , they will charge me a prepayment share (2%).
As I understand both RBI and NHB had issued orders not to charge prepayment charges for home loans on floating rate, but HDFC tells me it is not valid for plot loans. Please help with the correct advise.
Answers (1)
In case of ADJUSTABLE RATE HOME LOAN [ARHL] and DUAL RATE HOME LOAN [DRHL], during the period of applicability of the variable rate of interest no prepayment charges shall be payable for partial or full prepayments irrespective of the source.
However, for Plot Loans, no prepayment charges are payable if the prepayment is made within 3 years from the date of first disbursement of the loan, but in case the prepayments is made after 3 years from the date of first disbursement the same shall bear a prepayment charge of 2% of the amounts being so prepaid if the house is not constructed. HDFC shall seek proof of completion of house construction as deemed appropriate.
As your loan tenure has exceeded 3 years (6 years as mentioned by you), the foreclosure of the same would attract applicable prepayment charges.
The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.
Popular Property Lawyers
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Property Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or contact a Lawyer of your choice to address your query in detail.
Related Questions
- Joint property without partition.Co sharer sells a part by metes a
- how to get sanha number from police station
- Can I purchase a flat from co-operative society member
- will deed is valid or not in odisha?
- Neighbour problem on blocking the drainage line
- Overcharged amount for the land and taxes too?what is the legal remedy
"LawRato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."
Related Articles
- how to get building completetion & occupancy certificate
- Can a Gift Deed be challenged in India? - Property Gift Deed Rules
- Sons and Daughters Rights in Father's Property
- Illegal Possession of Immovable Property/Land
- Joint Ownership of Property
- Family Property Dispute Legal Solution
- Transfer of Property to Legal Heir after Death
- How to Resolve Land Dispute
- How to sell property in pagdi system
- Grandson's Right in Grandfather's Property
- Hakka Sod Patra in Maharashtra
- How to get succession certificate
- Property Document Verification in Bangalore
- Ancestral Property Partition and Family Rights
- How to send property partition legal notice?