Loan borrowers and Bank Account Holders may get relief: The Reserve Bank of India has said that banks should consider the possibility of allowing borrowers to pre-pay floating rate term loans without any penalty. RBI has also asked banks not to levy penalty charges on non-maintenance of minimum balance in savings account. Banks should also not take undue advantage of customer difficulty or inattention, RBI said in the policy statement. Instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit the services available on such accounts to those available to basic savings bank deposit accounts and restore the services when the balances improve to the minimum required level, RBI said. Further, banks should limit the liability of customers in electronic banking transactions in case where they are not able to prove customer negligence. The above suggestions, if implemented, shall bring relieve to millions of citizens. We strongly suggest that whenever you borrow funds from Banks, please insist on ZERO Pre-payment Penalty Clause. You should also negotiate on Processing Fee and Interest rates. DO NOT blindly sign papers/ loan docs. There are various options available now-a-days. There are some Financial Institutions which DO NOT levy any part-payment or pre-payment charge on any type of loan, whether Loan against Property (LAP) or Unsecured Loans. For advice, contact: Credit Facilitation Centre- I am SME of India ℅. Faridabad Small Industries Association - FSIA FSIA Park, Opp. Plot No. 23, sector 24, Faridabad- 121005 credit@iamsmeofindia info@iamsmeofindia 9711123111
Posted on: Wed, 02 Apr 2014 04:18:37 +0000
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