Legal Question in Banking Law in India

Dear Sir,

I am from thalassery, kannur dist. Kerala. We had taken a home loan of Rs. 10 lacs from federal bank in 2003, till date we have paid 9 lacs of interest alone and principle amount remaining the same as 10 lacs as on october 2012. We couldnt pay emi's on time so bank asks us to pay some amount in between (like Rs. 50,000 every 3 months). They never notified us about change in interest rate. When we asked they told that their computer decides the amount and they dont know much. We are fed up of the bank and their mental torture, and want to do a one time settlement. We want to get the settlement amount to be less than 10 lacs, because we paid 9 lacs interest alone already till date. Can you tell me how to solve this? And whether i can approach banking ombudusman? If possible i would like to file a case against the bank for settlement.


Asked on 10/23/12, 9:28 am

2 Answers from Attorneys
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

this is really strange. how can they just adjust the EMIs towards interest and not principal. you may approach the ombudsman and if the problem is not solved, you may approach the court.

read more on Indian laws on my website www.karvai.in

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Answered on 10/23/12, 10:51 am
J. Radhakrishnan independent Practice

Better issue a notice by regd. post to the M.D of the bank seeking the necessary relief on account of excess collection as interst. If he does not grant any relief file a complaint to the Banking Ombudsman of Kerala in due consultation with a local Advocate having experience in Bank related cases

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Answered on 10/24/12, 4:10 am


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