Today, I was robbed by a License Legal Entity, call BANK !
Whenever you sell your property within the bank lock in period, you need to pay penalty to the bank, or they they call it "Early Settlement Fee". The penalty rate is different for each contract sign, subject to your negotiation with Bank. Few years back the bank impose 2-3% penalty of the loan amount, which can reach RM6-9k for a Rm300k loan.
This is the clause I usually look at whenever I sign a loan agreement. However this so call License Financial Insitution getting very greedy nowaday, they will find every possible way to charge you as much they can. Mainly because they will earn less money when you settle the loan early than they hope. Some of the "creative" way I experience before are"
1. The Lock in period only start counting once FULL LOAN is disburse. Means you may serve partial loan payment during first 3 years during property construction period, but those 3 years is not counted as part of the lock in period. It only start counting after 3 years when FULL LOAN AMOUNT is release by bank.
2. Administration Charges. Some bank will impose thoudsands dollar of Admin Charges on top of early settlement fee. Maybe is quite expensive to hire secretary for bank I guess.
The latest one I kena is LOAN LEGAL FEE ! I opted for zero legal fee package when I signed the loan agreement, which I choose to pay higher interest rate than non-zero legal fee package. Today, the bank charge me the FULL AMOUNT of loan legal fee because I settle the loan earlier (sell house), not a single cent discount ! Damn !
Consequences: I serve higher interest rate loan for choosing zero legal fee package, and now I need to pay FULL loan amount without discount from lawyer. SHIT, I shall pay the legal fee myself and can get discount from lawyer directly!
Worse is this clause is never mentioned to me when I sign it, of course this is not a good argument as I myself signed without reading the terms carefully. Few minutes of laziness now costing me thoudsands dollar..... I feel like kena rape.....but worse is can't report to police as the rapist rape me legally...