This has recommendation to the RBI circular of August 02, 2019 on 'Levy of foreclosure charges/pre-payment penalty on floating rate term loans', mandating that NIL foreclosure or pre-payment charges will be imposed on floating rate term loans approved to Individual debtors with/without co-borrower( s) for the functions aside from for service.
Accordingly, this is to notify you that, notwithstanding anything included in the Transaction Documents, for Individual borrowers who has availed loan for organization purpose and for Non-Individual customers, foreclosure charges will be appropriate based on the rates recommended by the Bank from time to time. The present appropriate rates of prepayment charges are offered below for your all set referral.
aurumproperty.co.nz
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Part Pre-payment/ Foreclosure Charges (For Individual Borrowers with function besides business)
NIL
Part Pre-payment/ Foreclosure charges (For Individual customers with service purpose/ all Non Individual customers/ fixed rate loans)
- 5% on part pre-payment amount/principal exceptional if paid within 12 months
- 3% on part pre-payment amount/principal outstanding if paid after 12 months
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