https://www.taxtmi.com/caselaws?id=293468 A Reserve Bank of India circular barred banks from levying foreclosure charges or prepayment penalties on floating rate term loans sanctioned to individual borrowers, and the text treats a loan taken in the name of a sole proprietorship as falling within that category because the proprietorship has no separate legal existence from its owner. It further states that no distinction should be drawn between loans taken for personal use and loans taken for business purposes when the borrower is, in substance, an individual. On that reasoning, foreclosure charges and prepayment penalties had no basis under the circular. en-us Wed, 12 Dec 2018 00:00:00 +0530 Thu, 11 Feb 2021 20:27:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=293468 A Reserve Bank of India circular barred banks from levying foreclosure charges or prepayment penalties on floating rate term loans sanctioned to individual borrowers, and the text treats a loan taken in the name of a sole proprietorship as falling within that category because the proprietorship has no separate legal existence from its owner. It further states that no distinction should be drawn between loans taken for personal use and loans taken for business purposes when the borrower is, in substance, an individual. On that reasoning, foreclosure charges and prepayment penalties had no basis under the circular. Case-Laws Indian Laws Wed, 12 Dec 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=293468