struggling to get a closure on my home loan with ICICI bank. Ready to pay penalty on my o/s pricipal however bank is asking me to pay penalty on o/s principal plus all the
prepayments made in the mast 12 months.
ICICI bank customer care reverted on email "Foreclosure charges of 2% on outstanding principal plus applicable service tax on the foreclosure charges are being collected for foreclosing of the loan.
However, a 2% charge will be levied on all part-prepayments made in the last one year in event of a foreclosure."
the attached foreclosure statement does not show any thing like that.
it shows the outstanding pricipal as 38 k and penaly to be charged on o/s principal .. however the calculation of penalty of 2.21% is not done on 65 k but on prepayments made in the past 12 months. Some one pls tell them 2.21% of 38 k is not 6k....
They are making a mockery of our ocuntry law.. do what ever you can do is the message passed by thier employee if you say that your Bank is not lving up to the committments made during the sanctioning of loan!!!

How long have you been with this Bank?

No, I do not have an account