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PRE-PAYMENT OF TERM LOAN OR ANY OTHER TYPE OF FINANCIAL ASSISTANCE
Generally, pre-payment of loans is discouraged. Moreover, it upsets the financing plans of the Banks besides resulting in higher costs very often. Wherever the Bank agrees to accept pre-payment of loan, the premium equivalent to the net present value (NPV) of differential in rate of interest for the un-expired period discounted at prevailing rate of interest is charged. However, acceptance of pre-payment is at the sole discretion of the Bank.
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