Prepayment charges on home loan closure by personal funds

Location/place: Bangalore

Name of company/service: ICICI Bank Ltd.

Hi,

I took home loan at floating interest rate for little over Rs. 38 Lakhs from ICICI in Sept. 2006. I have been paying all the EMIs on time. In Oct 2011, I got it changed to Fixed interest rate for 2 years. Now, I want to close the loan by paying the entire outstanding balance by my own funds, but bank is insisting that I pay approx Rs. 82,000 as prepayment charges as it is currently on fixed rate of interest.

As far as I know, a) RBI has abolished prepayment charges on floating interest rate, and b) prepayment charges on fixed interest loan is applicable only when it is refinanced by other financial institution and not when it is foreclosed by personal funds.

Please guide me on this issue.

thanks & regards,
-Ranjan