Legal Question in Credit and Debt Law in India

Dear Sir/ Madam,

Greetings.

I had availed a personal loan from a XXX Credit Company Ltd in chennai for the amount Rs. 1,50,000/ - on EMI basis for 48 months. Till date I have paid 34 EMI without any default payment.

When availing loan, company executive had asked me to sign in blank document and when i asked him to provide the photo copy of the same, he replied that i would get this document by post along with other welcome letter and EMI statement. Also the executive conformed me that my rate of interest will be maximum 21%. Then I left the office provide him all necessary documents for loan processing.

Till date I had been paying my EMI presuming that my rate of interest is 21% per annum. When I came to know about EMI Calculator website then I immediately crossed checked my rate of interest based on monthly EMI which was showing my interest rate is nearly 35%. Immediately I have requested their customer care department to provide me the interest rate for my loan amount by email and I was shocked to know my interest rate is 34.21% when I received reply email from them. Also in the reply email it is mentioned that "We wish to inform you that the rate of interest applicable towards your loan account is 34.21%. Hence the same has been informed while the execution of loan agreement".

Then I replied to the email mentioning till date i was not informed about my rate of interest also " There was no mention of the interest rates in the Welcome letter. Moreover you have deducted over Rs 8,414 from my loan amount of Rs, 1,50,000 and this amount has not been reflected in the loan account details " with document proof attachment.

Based on 21% of interest i had cleared 90% of the due. But the company is insisting me to clear all my dues as per their 34.21% of interest.

Please provide me a solution how to settle this issue with the company.

Thanks and regards

S. K. Vinod

1 Answer from Attorneys

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