Business loan closure

[techno123]

I want to close my business loan and hence i have deposited to od cc account too but bank is saying that this is not your own fund hence as per law we will apply foreclosure charges. What should i do now as they are not understanding it. What to do??

 

[Vasuki]

I want to close my business loan and hence i have deposited to od cc account too but bank is saying that this is not your own fund hence as per law we will apply foreclosure charges. What should i do now as they are not understanding it. What to do??

Too much detail yet incomplete.
Please rewrite in points not a combined paragraph

 

[techno123]

In simple words want to close loan so i have do 2 things
1. Deposited outstanding amount
2. Applied for closure of loan
But bank saying fund that you deposited is not your and we will apply foreclosure.
How to deal with this issue?

 

[Vasuki]

In simple words want to close loan so i have do 2 things
1. Deposited outstanding amount
2. Applied for closure of loan
But bank saying fund that you deposited is not your and we will apply foreclosure.
How to deal with this issue?

What does it mean by not your money ? Does money has name on it 🥸
Which bank ?
Does employee said that ?

 

[varun__goel_]

In simple words want to close loan so i have do 2 things
1. Deposited outstanding amount
2. Applied for closure of loan
But bank saying fund that you deposited is not your and we will apply foreclosure.
How to deal with this issue?

Check in the loan document if there are any foreclosure charges.. Most of the loans have such charges ranging generally around 2-4% of outstanding principal amount..
*If found helpful, mark this as a solution*

 

[blacktiger]

how much is your foreclosure charges as per your document

 

[bsc0008]

But bank saying fund that you deposited is not your and we will apply foreclosure.

What do they specifically saying is that the SOURCE of the fund is from a loan from another bank or institution. Usually banks levy foreclosure charges if we close it via Balance transfer or another loan.
So if you haven't borrowed it, try to show the source to him and ask for waiver of charges.

 

[D₹V]

What do they specifically saying is that the SOURCE of the fund is from a loan from another bank or institution. Usually banks levy foreclosure charges if we close it via Balance transfer or another loan.
So if you haven't borrowed it, try to show the source to him and ask for waiver of charges.

Write it to Nodal

 

[basant]

In simple words want to close loan so i have do 2 things
1. Deposited outstanding amount
2. Applied for closure of loan
But bank saying fund that you deposited is not your and we will apply foreclosure.
How to deal with this issue?

One bank employee told me that if u have registered your firm on msme and loan is below 5 crore then bank cant levy foreclosure charges.