Union Home Mortgage Review – FORECLOSURE Charges / Prepayment Penalty in Loans || बैंक Foreclosure Charge क्यू लेती है ?
Union Home Mortgage Review – Review
What is Foreclosure charges / Prepayment Penalty ?
If anyone repay the loan before the loan tenure, the lender may levy a prepayment penalty which is called foreclosure charges.
The lender charge prepayment penalty to cover the lost interest revenue from the early closing of the loan.
Foreclosure charges always being charged on principal outstanding amount of loan.Generally, Lender charge different percentage of foreclosure charge on different products like business loans, Personal loans, Mortgage loans etc. It may vary from 1% to 5 to 6 % of outstanding loan amount.
Foreclosure charges are not applicable on Home loan for individuals only. If your business firm/company is co -applicant with you in your home loan then foreclosure charges may apply.
Foreclosure charges along with other terms & conditions are mentioned on sanction letter. If it is not written, then you must talk to your bank and try to get the details in written before accepting the sanction letter.
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