How to get back excess interest charged on forigen education loan.
koteswara rao jonnalagadda
(Querist) 16 March 2012
This query is : Resolved
to.
the expert lawyers,
namaskaramulu.
i am from hyderabad sir.i have two daughters and i took two different foreign edu loans in the year 2003 and 2005 respectively by giving two differrent properties.in 2003 loan there is interest difference i observed and requested banker to look in to the issue,but they said that is right,but once again i verified it looks that caliculation mistake is there.
i have given a letter to chek the interest
along with a cheque for rs 85000/-under protest since they said that it is going to be n.p.a.to aviod it i have paid in the month of june-2011.after encashing the cheque also banker was not responded.
subsequently i have written to the higher
management with a copy to the banking ambootsmen-rbi-hyd.
my appeal is two points.
1.wrong caliculation of interest.
2.my original sanction is interest on quarterly compounding with monthly rest,
where as they have compouded on monthly.
there is no intimation about this to us and when we asked they said they dont have the system of informing.
now they accepted the interest caliculation
mistake and reduced rs 37000/-and given the revised statement asking us to conform it.but where as refusing the second point state ing that that was the rbi guide line.
mean while the second loan was closed in nov 2011.we observed there is also imterest caliculation mistake is there.
they are not releasing second loan security documents and making a link of first loan.
while correspondence in the process bank issued a surface act notice for which we replied through drt advin nov2011.
kindly advise me what to do at this juncture.
Deepak Nair
(Expert) 17 March 2012
You can approach teh RBI directly and lodge a complaint.
There is another option of filing a consumer complaint for unfair trade practice.
malipeddi jaggarao
(Expert) 17 March 2012
1. The interest calculation wrong is accepted by the bank and the amount is adjusted.
2. In your sanction letter interest is chargeable with quarterly rests whereas they have charged with monthly rests.
3. Your second loan is closed and they are not releasing the documents linking with first loan.
4. A notice under SARFAESI Act is served on the owners of the property which is given as mortgage to the first loan.
If these are the clear facts, the reply is:
1) Now you do not grievance with wrong calculation of interest in first loan.
2) As far as monthly rests is concerned, it is a fact that the quarterly compounding is changed to monthly compounding long back all the banks. Yes, they are supposed to intimate you, but many banks do not do this and it is a procedural lapse. According to me fighting on this issue is no benefit. Any way your repayment is irregular. Had they informed you the change, would have closed the account to avoid additional interest burden? Certainly not. So your point is purely technical, though you are right and better not to exploit it through court remedy.
3)If the properties given for second loan are separate and the mortgage of these properties are not extended to the first loan, detaining the documents is illegal. Serve a lawyer's notice. If there is no written extension, Bank will have to release them. After service of lawyer notice, meet personally and demand for documents. If they do not accede, take remedial measures through consumer court.
4) Bank has served a notice under SARFAESI means the account already become NPA. If you have the repayment capacity why did you allow the account overdue? Simply because they have not answered satisfactorily for not intimating you the switching over the interest application from quaterly rests to monthly rests, you should not have allowed the account to become NPA. Since wrong calculation is already adjusted, it is better to bring the account in to order and settle the matter amicably with mutual discussions instead of fighting a legal battle.
Guest
(Expert) 17 March 2012
Well advised by Mr. Jaggarao.
koteswara rao jonnalagadda
(Querist) 17 March 2012
to,
sri jaggarao sir,
our balance is only rs67000/- and out of that they have reduced rs 37000/- for correction of interest the balance is rs 30000/-only.
if the issue of quarterly compounding considers we will get back from bank.
kindly advise me for further steps.
with regards,
koteshwara rao jonnalsgadda
