Legal Question in Banking Law in India

Hello Sir,

8 years back I had taken homeloan from bank at then fixed rate. Its mentioned in agreement that this rate is going to be fixed. Bank had not changed this interest rate since then. Recently I had to withdraw some money from this account. ( which acts as current a/c). This has prompted back to send me notice that I have to pay arrears for the increased interest rate for last 4-5 years. its also mentioned in agreement that bank has to inform customer 15 days in advance this interest rate change and customer has option of closing the loan. But I have not got such any such notice. Bank manager says its a mistake from their end but I should now pay the arrears.

I have showed him my investment proofs saying I could have closed by loan instead of investing in instrument which gave me lower interest rate than that of my loan. But there is no positive reply from Bank. And they keep insisting that i should pay arrears. I would like to seek legal opinion on this. Any advice would be of great help. Thanks.


Asked on 8/16/14, 1:53 am

1 Answer from Attorneys
J. Radhakrishnan independent Practice

Issue a reply setting out clearly your objections. Send it to the Chief Executive of the Bank and seek redress from harassment, within 30 days. If still, the demand persists, file a complaint to the Banking Ombudsman.

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Answered on 8/17/14, 4:52 am


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