Legal Question in Banking Law in India

Hi.

I have taken car loan in 2006. I am keep paying the EMS's regularly. The EMI amount what I am paying is as per the sanction letter.

Recently I got a call from bank officer saying I need to close the car loan within with in 84 months. There is about 50000 rs amount is pending which I need to pay by another 4 months. This is because RBI has sent notice to banks to close the lone on time. The balance amount pending is because of the fluctation in rate of interest which can't be adjusted in no of EMI's.

I just want to know if there is any such circular from RBI not to extend the tenure if loan amount pending because of the rate of interest fluctuation.

Thanks in advance


Asked on 4/12/13, 4:08 am

3 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

12.04.2013

Dear Sir / Madam,

(Bengaluru, Karnataka)

There is no RBI circular not to extend the tenure of the loan amount due to interest rate fluctuation. Moreover, monthly EMIs for the entire loan tenure are fixed when the loan is taken without taking into consideration interest rate fluctuation.

Regards,

FCA Prashant Chavan

Mumbai

(You can also mail me for any further on-line advice at [email protected])

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Answered on 4/12/13, 4:37 am
J. Radhakrishnan independent Practice

As far our search there is no such circular from RBI. Pl. ask your bank about the circular, if any.If they fail to justify, complain to Banking Ombudsman.

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Answered on 4/13/13, 7:03 am
Jayesh Desai Jayesh Desai

I concur with Mr. Chavan & Mr. Radhakrishnan.

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Answered on 4/15/13, 1:29 am


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