Hi, I have taken BOB composite loan (plot+home construction) and its been 4 years into the loan and i have replayed 80% of the amount taken. Now i noticed that (when i went to bank to close my acct) they have charged me additional 2L (5 months back) for not constructing home even after 3 years. Can someone please help how i can get rid of this additional amount charged?
Most composite loans come with certain conditions. These include a timeline for construction. Usually, banks require that you construct a home within 2-3 years of getting a composite loan. If this is not done, they start charging you an interest rate that is applicable for plot loans. You must understand that plot loan interest rates can be much higher than composite loan rates. Composite loan rates are closer to Home Loan rates. We are guessing this is what happened in your case.
We suggest that you check your Home Loan contract to understand the terms and conditions of the loan. If you have signed such a contract there is nothing much you can do. You can ask your bank to convert your loan into a composite loan if they are charging you at the rate of a site loan. You should try to figure out how that additional amount was charged before you decide to take any action.
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Most composite credits accompany certain conditions. These incorporate a course of events for developers. For the most part, banks necessitate that you build a home inside 2-3 years of getting a composite advance. In the event that this isn’t done, they begin charging you a financing cost that is material for plot advances. You should comprehend that plot advance financing costs can be a lot higher than composite credit rates. Composite credit rates are nearer to Home Loan rates. We are speculating this is the thing that occurred for your situation.
Loan On Mind recommend that you check your Home Loan contract to comprehend the terms and states of the advance. In the event that you have marked such an agreement, there is not a lot you can do. You can request that your bank convert your advance into a composite advance in the event that they are charging you at the rate of a site advance. You should endeavor to make sense of how that extra sum was charged before you choose to make any move.