CITI Bank / Home Loan
Pre-closure charges on Home Topup (imrovement) loan

I have both Home loan and Home Topup loan from Citi bank. They are demanding now 2% preclosure charges on the home TOP-UP. Home top up loan attracts any preclosure charges?

I have been told by my friend who works in other bank that, RBI given clear direction to all the banks (MNC and national and other institutions) that; they should not charge any pre closure penalty on home loan (& its related products like top up loans). When I asked this to CITI bank people, still they are insisting that they can charge since I have signed the document.

Can you please clarify whether any bank can charge pre-closure (Switching to another bank) penalty on home TOP-UP loans?

Thanks Much.