New Delhi, Oct 12 (KNN) Axis Bank is yet again in hot waters for imposing takeover charges and harassing its MSME customer with 2 per cent foreclosure charges.

Furniture manufacturing MSME, Reyo Seating Collections based in Barwala, Haryana has accused the private lender of harassment with regard to the exploitative foreclosure issue.

Speaking exclusively with KNN, Tarun Bansal, Proprietor, Reyo Seating Collections said, “It has been more than a month that I have been struggling to close my Axis Bank account and have been imposed with unfair charges.”

Bansal had informed the bank that on prepayment of floating rate loans banks cannot levy prepayment penalties on MSMEs, as per the circular of BCSBI, Clause no. 5.3 point no. H.

Regardless of endless appeals and request, Bansal said that he is unable to focus on his business and is in a constant state of worry due to the lack of services from Axis Bank.

He also complained about the lowering of his CIBIL score due to Axis Bank’s technical issues.

Axis Bank has rejected his request for waiver of take-over charges and said that they are part of the contracted terms and conditions of the duly signed sanction letter which explicitly states in point number 14 of specified terms and conditions “In case of takeover of credit facility, a charge of 2 per cent plus applicable GST shall be levied on the sanctioned loan.  (KNN Bureau)