best auto finance from preclosure prespective

ntomer · 1st August 2007, 13:14

I foreclosed a car-loan with Standard Chartered Bank two years ago. When I took the loan (in 2001) the foreclosure charges as mentioned on the document was 2.5% but when I actually closed the loan I had to pay 4.75%.

Why, because there was a little clause in the agreement - Banks holds the rights to change any condition uni-laterally. Beat that.

P.S. I am again in the process of transferring my home loan from StanChart to LIC Housing Finance and will be paying 2.5% foreclosure charges. Apparently these charges were hiked onky for Car Loans.

Cheers

Nitin

1st August 2007, 13:14	#16
ntomer BHPian Join Date: Jun 2005 Location: New Delhi Posts: 643 Thanked: 134 Times	I foreclosed a car-loan with Standard Chartered Bank two years ago. When I took the loan (in 2001) the foreclosure charges as mentioned on the document was 2.5% but when I actually closed the loan I had to pay 4.75%. Why, because there was a little clause in the agreement - Banks holds the rights to change any condition uni-laterally. Beat that. P.S. I am again in the process of transferring my home loan from StanChart to LIC Housing Finance and will be paying 2.5% foreclosure charges. Apparently these charges were hiked onky for Car Loans. Cheers Nitin
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