Please see the agreement documents you signed if it has a foreclosure penalty clause. In other case you may write to banking ambudsman in this regard and if not satisfied you may go to consumer Rederessal Commission or forum as the value is.

No there is no foreclosure charge on lona agaisnt property the charge of 4% can be levied only if the closure is with 12 months from date of loan disbursement.

Rbi circular on foreclosure charge and left of interest.

https://m.rbi.org.in//scripts/NotificationUser.aspx?Mode=0&Id=9092

1. The foreclosure and its terms will depend on the loan agreement.

2 The absence of any foreclosure charge varies with fianance company to another.

3. in most cases it is within 1-1/5 years.

4. Since it is 4 years the financier can not change any foreclosure penalty and if it does you can file case before the consumer forum to avoid this penal amount and for damages.

Company can recover foreclosure charges as per terms of your contract

2) if there is clause that 4 per cent is payable you ha e to pay said amount

you can file complaint before consumer forum to recover foreclosure charges wrongly recovered from you

RBI does not approve of charging penalty or foreclosure charges.

Lodge your protest with them against their act of charging foreclosure fee @ 4%

You have the option of approach the consumer forum in the instant matter after serving a legal notice upon cholamandalam.

No they will not charge you the penalty of 4%. But please read the documents carefully and if there is a clause, then you can take legal steps.

The foreclosure details and the applicable charges may be seen from the loan offer letter itself.

If there any such mention and you have agreed for the said terms, then you have no option than to oblige.

If they can't can we file a legal suit in NBFC ombudsman

You can lodge a complaint with the said ombudsman, but what are your grievances, first identify the same.

Ifg the foreclosure rules say that this percentage is leviable for foreclosure within some minimum period from the date of loan, you may hav no cse or grievance even if yo complain.

Dear Client,

Prepayment / Foreclosure fees of 2% applicable; unless specifically mentioned in the borrowers’ loan agreement.

1. Kindly check the "Foreclosure charges" that is recorded in the Loan agreement, signed by you.

2. IF the Foreclosure charges, are defined as 4% then you will need to pay, ELSE NO. File complaint with RBI.

Keep Smiling .... Hemant Agarwal