Legal Question in Credit and Debt Law in India

Dear Madam/ Sir

I have availed a car loan amounts to Rs 3 lac Seventy thousand in 2005 from Public Sector Bank.The loan was for 7 years and hence tenor was to over by 2012.

The bank's sanction letter very categorically mentions interest rate as 9.75% and Monthly EMI of Rs 5926 for 84 months. I have in accordance with the sanction letter, however the bank now served me a legal notice for an outstanding balance of Rs 133000. The bank has calculated on floating rate through out the entire loan. The bank also have not any information of any floating rate of interest or the changes in my EMI s to this effect. Nothing is mentioned about the variability of interest rate in the sanction letter.

please advise.

thanks

naveen chauhan


Asked on 3/14/14, 1:26 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

14.03.2014

Dear Naveen,

If you have repaid all the 84 EMI's of Rs. 5,926/- in accordance with the sanction letter in 2012 itself, there is virtually no legal case that the bank can stake a claim of Rs. 1,33,000/- from you on account of revised interest rates. Please reconfirm your sanction letter that there is no clause about variability of interest rates and send a reply to the bank accordingly.

Regards,

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Answered on 3/14/14, 8:02 am


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