Kind Attention: regarding the foreclose charges charged by the Finance Companies.
This is in reference to an Auto Loan with Kotak Mahindra Prime Limited at Jaipur, Rajasthan. I borrow an auto loan and I paid all dues before time as foreclose. The part of activity, where I want RBI’s focus is the amount of foreclose i.e. 5.21% of the balance amount was charged as a foreclose charge. I would like to ask, if RBI has given the liberty to banks to charge the foreclose interest on arbitrariness. If, it is not so, then there should be a check on such kind of activities and arbitrariness of Finance Company on their foreclosure interests. I would also like to ask you the reason for such kind of activity and arbitrariness done by Finance Company.
Thanks & Regards,
Shyam Sunder Agarwal