I just learnt about this recently. My parents are paying an EMI loan that apparently can’t be paid in full till the end of a particular time-period. As in, even if you pay all the amount beforehand, you’ll still have to continue paying till the end of the year, and only after the end of the specified time period, can you pay in full, and expect that the loan be paid.
I…really don’t understand why my parents should have to pay excessive interests to the banks. This particular bank, without the consent of my parents, extended the payment duration by three more years during the COVID period by three years, and this would be the last year, that’s what my mother told me. Like, what the fuck? Please, someone explain me what is going on.
This is just how they fuck you. Sadly it’s legal
they should be illegal. there is no benefit to the debtor.
when I was working with my loan officer for a mortgage I made sure to specify “no penalty for early payoff”. paying extra to principal as one can is one of the few ways a working class person can avoid being completely reamed by the servicer, because the “return” of avoided interest is guaranteed and since it’s not “income”, it’s not taxable.
if someone tries to talk you into an EMI on a loan, treat them as though they asking to close your eyes so they can bash you over the head with a rock.
That’s totally normal, most car loans operate this way.
