Regarding look up period.

[evadinrish]

Hi,
My friend took a loan of 9.95 lakh and now he wants to close it within the look up period but has already paid the insurance and processing charges
. If he closes the loan within the look up period would he get back the money deducted in insurance and processing charges and whether he has to pay any interest?

 

[ShavirB]

Most likely processing charges won't be refunded. RBI has also mentioned in its circular (Circular DOR.CRE.REC.66/21.07.001/2022-23 dated September 02, 2022) that 'reasonable processing charges may be deducted by the Bank in case customer exits in the Cooling Off Period".

For Insurance, you can try to get these charges reversed since there is a Free Look period of 15-30 days in Insurance also.