interest on overdues - home loan
Querist :
Anonymous
(Querist) 07 March 2011
This query is : Resolved
In this case my client has availed of a 20 yrs home loan from a bank. when he availed of this loan there was no ecs system and pdc's for 12 months had to be given to the bank.
during one year on account of mis-communication from the bank 2 emi's were missed out. however, a representative from the bank / dsa / collection agency approached my client and collected only 1 emi. my client was not aware that 2 emi's were due.
now 3 yrs down the line since the past 12 months they are harrasing my client and sending him statements amounting to Rs/ 1 lac odd towards interest for non pymt of overdues.
kindly note that the loan has been taken in june 2003, principal amt involved is Rs. 20 lacs and the emi is Rs. 23,000/- so my client is paying Rs.2,76,000/- every year towards the principal and interest. on an average my client has paid the bank Rs. 21,39,000/- till date but the principal outstanding still shows as Rs. 18 lacs.
on asking them for statements, we are not receiving the same but they are religiously sending the reminders for the emi and overdues to be paid and acknowledging the ecs remittances every month.
now my client has paid the overdues under protest with the hope that he can fight it out with them and settle the same towards principal repayment and not as interest on overdues since he was not aware of any dues?
what is the course of action to be taken which can help him to divert his hard earned money towards loan repayment and not as interest as overdues as explained by them?
Kindly advice.
Thanking you.
R.Ramachandran
(Expert) 08 March 2011
Dear Anonymous,
It is quite unbelievable.
How can your client not know that one emi was missed out especially when the emi is Rs. 23,000/-.
In any case, the bank need not hinge on the said EMI, but only needs to adjust the emis paid by your client and go on show the balance outstanding and the interest thereon.
As regards non-receipt of the statement from the bank, again it is unbelieveable since how then your client is filing the income-tax return claiming rebate for the interest paid, the principal paid etc.
Your client appears to be hiding something from you. Probably you are also allowing yourself to be taken for a ride!
