Car loan
Sam Raphael
(Querist) 27 July 2015
This query is : Resolved
Dear all,
I am from cochin kerala, I have taken a refinance loan from SRI RAM finance pledging my car. The loan was taken 1 and half years back, it was taken for meeting the hospital expense of my father. As this was situation I was in hurry and did'nt check the interest rate and other terms & confitions of the of the loan. But when I have calculated the EMI and loan amount, i was shocked to realise that the interest rate is 28.13 % (diminishing ). In order to know the truth I have requested the finance company to provide me the copy of agreement and sanction letter, but they were rude and informed me that they are not going issue anything.
In this scenario I have asked them to go ahead with the recovery process because it better to loose the car than paying their EMI and get tension gor the next 3 years.
So my query is, in case if they attach the car and put in auction and sold.
If in case the auction value is less than the outstanding loan amount, what happens, whether I need to pay the balance or they will adjust it. I have already paid more than half of my loan amount
Please give me advice on this
Rudrawar Narayanreddy
(Expert) 27 July 2015
there are laws which prohibit charging exorbitant interest. Check with your local advocate for such one in your state. if such act is existing in your state verify you could file suit by depositing the amount due as per your calculation as per the permissible interest and court will decide the matter.
There is such provision in Karanataka
Dr J C Vashista
(Expert) 27 July 2015
You should have been vigilant before availing the loan, in whatsoever conditions, otherwise the private financiers are trapping innocent borrowers, as in your case.
Once the mortgagor(financier) has repossessed the vehicle, your liability is over.
P. Venu
(Expert) 27 July 2015
The interest charged is illegal. It is better you take recourse to Law.
Guest
(Expert) 27 July 2015
To know the realistic position about interest claimed by the company, you may better ask the company in writing to provide you the complete statement of EMIs fixed including the recovered amount with split up of the principal amount and the element of interest paid as well required to be paid on the respective EMIs.
That may help you to decide the further course of action required to be taken by you.
Sam Raphael
(Querist) 27 July 2015
Many thanks to all for your valuable advice
I have already sent letter requesting the loan agreement, loan schedule and sanction letter by email and by registered post to the concerned branch and to the company's grievance department a month before but no response till date.
Rajendra K Goyal
(Expert) 27 July 2015
If you can arrange, obtain loan from nationalized Bank and pay back the loan to private player. If you can arrange, you can pay back full loan immediately.
If your car is not worth the amount to be recovered, the balance can be recovered from your assets / pay / other sources.
Sam Raphael
(Querist) 27 July 2015
Is there any solution to resolve this issue in reasonable manner?
Whether i can file a case agaist them?
If yes how can it be possible?
Do anyone have contacts with advocates in kochin who can help me ?
Rajendra K Goyal
(Expert) 27 July 2015
Filing case against them may not be useful to you, case may run years with uncertain results. Meanwhile the amount would go on increasing, you have signed the documents. Pay off the outstanding and get rid of the problem.
P. Venu
(Expert) 27 July 2015
He is from Kerala, where civil cases, at present, are disposed fast. The queriest also has the option of taking up the matter in the 'Adalat'.
Sam Raphael
(Querist) 28 July 2015
Is der any legal ways to get the copy of loan agreement & sanction letter from the financers
