I borrowed 27Lacs personal loan from SC bank in Feb-March 2020, based on my pre-covid house hold income. Due to pandemic, my house hold income reduced drastically, which subsecuenly pushed me to reduce number of EMIs I am Paying. I decided to close loans that I am paying higher interest, that SC bank ROI 12.25%. When I approch bank for pre closure, I was told to pay 4% pre-closure even after explained the unexpected situation imposed by COVID 19.
I was begging several times to reduce pre closure chargers to 1%, which I can afford. But SC bank refused to reduce below 4%. I even said in the past 5 years of my association with SC bank as a borrower, I never defaulted even single EMI and to consider that as a goodwill, but no use.
Due to COVID 19,
1. Lost my house rental income
2. My wife's salary reduced by half
3. Handsome pension of my father stoped, as I lost him to COVID - All commitments he had, now on my soulder.
4. No or very little pay raise due to pandemic, which is not even matches 10% of the cost of inflation.
Bank is stating that as per policy and the agreement I signed, I should pay 4% pre closure. The time of signing the contract, my household income had no impact, and was able to commit all EMI. Now the pandamic induced situation is un warranted and hence how the SC bank can stick to pre-covid charges?
As I pledge gold jewels to mobilise fund, now I am forced to pay gold loan interest as well as SC bank EMI. I do not want to be a defaulter and hence I am taking all possible measures to re pay out standing. I kindly request the forum to provide me support to over come the situation.
I also request the readers to be cautious and use my lessons before prusuing bigger loans from ruthless banks, which sucks our blood with only focus of their profit. Kindly share this lessons for your friends and relatives benefit as well.
Thank you
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