Aditya birla loan close

[Giant]

Hi
We have a loan of 45lac from Aditya birla roi 10.7% mortgage loan after 1.2year 43.8 lac is remaining we want to close this loan as we hot a home loan at 7.7%bob but Aditya Birla asking for foreclosure charges i.e 4% very high thought rbi have removed these charges now confused what to do negotiate or complain in RBI for this


Help for better decision

 

[Giant]

Hi
We have a loan of 45lac from Aditya birla roi 10.7% mortgage loan after 1.2year 43.8 lac is remaining we want to close this loan as we hot a home loan at 7.7%bob but Aditya Birla asking for foreclosure charges i.e 4% very high thought rbi have removed these charges now confused what to do negotiate or complain in RBI for this


Help for better decision

@Skylar @TaxWiser

 

[Giant]

@Skylar @TaxWiser

@Skylar pls tag someone who can help @TaxWiser

 

[Giant]

@shavirbansal @nikhilchauhan guys do you uave any suggestions

 

[AbhijeetSingh.CO]

Bro, if your Aditya Birla loan is floating rate and it’s in your individual name, then as per RBI rules, no bank or NBFC can charge foreclosure or prepayment penalty. So that 4% charge (which is around ₹1.75 lakh on ₹43.8L) should not be applicable.
First, check your sanction letter / loan agreement and confirm whether the loan is floating or fixed.
If it’s floating:
1. Tell Aditya Birla to waive the foreclosure charges and mention RBI guidelines.
2. Ask them to give this demand in writing with justification.
3. If they still refuse, raise a complaint with their grievance cell and then to the RBI Ombudsman. In most cases, the bank/NBFC backs off.
If it’s fixed rate: Then foreclosure charges are usually allowed as per the agreement. In that case, calculate whether shifting to the 7.7% loan still makes sense after paying the penalty.
Bottom line: Don’t pay 4% blindly. First confirm floating vs fixed. If floating, fight it and escalate.