HDFC, LIC Housing under CCI lens for loan pre-payment penalty

Abuse of Dominant Position:

Competition watchdog CCI has brought under its scanner several private banks and housing finance companies, including HDFC and LIC Housing Finance, for imposing penalty on pre-payment of loans.

The Commission, according to a CCI official, is scrutinising a complaint concerning pre-payment penalty from a customer against major home loan players like HDFC, LIC Housing Finance and Deutsche Postbank.

In contrast, public sector banks do not charge penality for the pre-scheduled foreclosure of loans.

The complaint has been filed under Section 3 of the CCI Act that deals with abuse of dominant position by companies.

Although the Commission has yet to take a view on the matter, the official said, if the lenders were found guilty of abusing their dominant position, the practice could be banned across the industry.

To read more, please, visit zeenews

Subscribe for Free!

To receive free emails or free RSS feeds, please, subscribe to Ravi Karandeekar's Pune Real Estate Market News Blog

For my blogs on real estate projects near Hinjewadi, real estate investment, advertising and other related topics, please, visit and join my Ravi Karandeekar's Pune Real Estate Blog Group