Legal Question in Banking Law in India

Respected Sir,

My son has taken a Home Loan from HDFC, Hyderabad for a property at Hyderabad.I

am from Kolkata. My son is abroad. My question is whether during his absence I can make prepayment of Principal Amount in favour of his Loan A/C No at any of the HDFC Kolkata office.HDFC IS NOT REPLYING

I am a Retired Govt Official at a Senior level and to the best of my knowledge Near

Relatives(Father to Son)Can Make Prepayment in Favour Of the Son WITHOUT ANY PREPAYMENT PENALTY.AS PER NATIONAL HOUSING BOARD CIRCULAR PAYMENT FROM OWN SOURCE SHOULD BE TAKEN WITHOUT ANY PREPAYMENT PENALTY WHETHER Father's contribution should be considered as from own source of the Borrower.Opinion of some Financial Consultants AGREE WITH THIS. My

only object is to cut down the Interest Amount as much as possible.

Please help me with necessary circulars


Asked on 4/11/13, 5:20 pm

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

12.04.2013

Dear Sir,

(Kalindi Housing Estate, Kolkata, West Bengal)

Even if you prepay the entire loan amount, prepayment charges will be applicable. There is no RBI circular which waives prepayment charges if father prepays the son's loan amount.

Regards,

FCA Prashant Chavan

Mumbai

(You can also mail me for any further on-line advice at [email protected])

Read more
Answered on 4/12/13, 4:34 am
Jayesh Desai Jayesh Desai

Every bank has its own policy, in this regards. They may also waive such charges, if you approach them properly, even if the same is chargeable. RBI does not dictate any policy for this, as these falls within the commercial decisions/wisdom of each bank.

You may prepay the loan, and charges will be as per Bank's policy.

Read more
Answered on 4/15/13, 1:27 am


Related Questions & Answers

More Banking Law questions and answers in India