Kotak Mahindra Prime Car loan
Prepayment penalty

I have taken a Kotak Car loan vide Ageement # CF4370308. This loan was for 60 Months and I have paid the 27th EMI in Feb.

I would like to pre close this loan. The Principal Amount out standing is INR 244427/- and the loan is with effectively 6% interest. I was informed by your Car Loan department that I need to pay 5.52% pre payment penalty over the outstanding principle amount to settle this loan account.

I have paid the better part of the Interest in the first 3 year of my repayment. Still bank is charging me another 5.5 % penalty on the loan which is with 6% effective interest. I end up paying only 6% interest in next 33 months where as I am getting penalised with 5.52% when I pay the money to the bank upfront.

I feel this is cheating by this bank and they should relook into this once again