Tirupur: In a representation to the Reserve Bank of India, the Tirupur Computer Embroiderers Association has requested the apex bank to stop levying pre-closure charges if loans are transferred between nationalised banks.

“Many units transfer loans between nationalised banks because of attractive interest rates. If they do, they are facing constraint that the banks where the originally loans were drawn, are charging pre-closure at higher rates. We have more than 220 members in our association. Many of them have applied for transfer of loans between nationalised banks or from scheduled banks to nationalised banks. They are facing the issue,” said president of the association R Kalyana Sundaram.

“The units, which have availed large loan amounts have to pay 2-3% of the total loan amount as the pre-closure charge when they try to transfer them to some other bank,” he said. “All our members are under MSME sector and are already facing slowdown in the business. The pre-closure charges are abnormal. We request the RBI to strike down the pre-closure charges. It will benefit all other MSME units as well,” he added. TNN

Published On : 05-04-2019

Source : Times of India