Dear All,

I have taken plot loan from HDFC Bank, Noida in May 2011. Now i have applied for construction loan from HDFC Bank in December 2011. The two loans will be merged and the entire loan will be considered as construction loan. They are saying that the plot loan will be closed out from the proceeds of construction loan and 2% prepayment penalty will be levied on the outstanding plot loan.

Please advise whether the instruction of RBI on waiver of prepayment clause do not apply to all banks and;
Whether plot loans are part of home loans or not.

kindly advise the course of action available to us.

Thanks,
Vatsal