Cholamandalam Investment And Finance Co. Ltd. — Loot of Prepayment charges of Loan Violation of RBI GUIDELINES

Address:

New Delhi, Delhi

On 7th December 2013, I was sanctioned a loan of Rs. 1, 25, 00, 000/- (Rupees One Crore twenty five lacs) by Cholamandalam Investment and Finance Company Ltd. carrying the Loan Account no. X0HEDHE[protected]. I gave an application for closure of loan dated 16th April 2015, company provided me the letter dated 28.05.2015 in which they have expressed the calculation of the total amount payable as Rs. 1, 22, 34, 858 which includes 4% of pre-payment charges i.e Rs 528343/- which is totally against your notification stating that - vide Reserve Bank of India’s notification RBI/2014-15/121 dated 14.07.2014 which is attached herewith this letter, RBI has notified all NBFCs not to charge any foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect thereof as a measure of customer protection and also in order to bring in uniformity with regard to prepayment of various loans by borrowers of banks and NBFCs. I had to make payment as per closure provided by the company on 1st june 2015. kindly take serious action against the company and issue instructions to the company to refund the excess amount they charged from me of Rs 528343 with interest . Rajesh Gupta ([protected])