“They are also refusing to give calculation sheet. they are asking me to use google emi calculator.”
You are within your rights to demand mathematical formulae applied by it, in writing on its letterhead under original seal and signature of competent employee of it with name, designation, dept, address of the employee below his/her signature, and supply it to you by redg. post only.
If it states computer has calculated you may demand mathematical formulae fed by it in its computer.
DEcline this google calculator or any other calculator until or unless mathematical formulae fed by it is supllied to you in writing.
The calculation by lender and borrower should be equal to same amount, by applying the correct mathematical formulae.
Bank has to subscribe to ‘Code of Bank’s Commitment to Customers.YOu may go thru para 3.3 and others.
You are within your rights to approach RBI,BCSBI…….and of course, DCDRF, Lok adalat, courts.
8. What is EMI? Under the instalment plan for housing loan, how is interest calculated?
Repayment of a loan is usually made on a monthly basis in equated monthly instalments (EMI). Each instalment consists of two parts, namely, principal repayment and interest payment. EMI is mutually agreed between the borrower and lender. The instalment depends on the following:
· principal amount of loan
· loan tenure
· interest rate
9. How interest is computed under monthly-reducing basis?
· the principal amount paid every month reduces the principal amount
· interest for the following month is computed on the reduced principal outstanding at the start of each month
· with the repayment of loan periodically, interest portion of the instalment gets reduced and principal portion rises
11. Do I have access to loan documents? If so, what are they?
Yes. You can have access to loan documents. Following are some important documents provided by banks:
· letter of offer
· copy of filled in loan application
· copy of loan agreement
· terms and conditions governing the housing loan
· other documents such as schedule of fees and charges
Banks are required to give authenticated copies of documents executed by you free of charge. (cf. para 8.11.1 of Code of bank’s Commitment to Customers)