What Is Penal Interest? Simple Guide for Loan Borrowers West Delhi

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Published date: 06 May, 2025 05:04 PM
  • Location: West Delhi, Delhi, India
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Penal interest is an additional charge incurred when a borrower violates loan terms, such as failure to pay. It is computed as a percentage of the outstanding amount. The penal rate is typically more than the standard loan rate and varies with the lender's terms.

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