Increase in tenure of loan by nbfc (private fiancer) arbitrarily

Sumit Aggarwal (Querist) 12 May 2015 This query is : Resolved
My client took a Loan against property from NBFC (Private Finance Company) for 10 years (120 months equal monthly installments) total Loan amt 20 Lac.

My client took loan 8 years back and his installments are going on time without any default.

My client contacted the NBFC to know the current Principal outstanding. My client was shocked to know the current principal outstanding is 17.5 Lac.

My client asked NBFC that after 8 years the principal amount should be much lower than this because he is making timely payment.

NBFC told him that the Loan was sanctioned on floating rate and as & when the rate increases or changes they increase the tenure of loan instead of Loan Amount. NBFC is also charging Insurance Premium from the installment and I never asked them for any House insurance from NBFC.

Now, the NBFC has changed the tenure to 25 years therefore principal outstanding is this.

Kindly let me know.. what to do in this situation. Presently the intrest rate is less even than they are still charging 17.25% per annum.

where to write the complaint against the NBFC and how my client can get the relief by the incriment in tenure of loan by NBFC. Please let me know the correct remedy of all this.

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Kumar Doab (Expert) 12 May 2015
First of all collect loan brochure,offer,loan application,loan approval,loan agreement...............and go thru the clauses............

Rajendra K Goyal (Expert) 13 May 2015
Immediately Switch over the loan to some public sector Bank or if in a position to repay, close the account.

Ask for complete details of account and in case of any discrepancy send notice.

Guest (Expert) 13 May 2015
What about detailed EMI statements containing the elements of of principal amount and interest as well as the recovery statement of interest for the purpose of income tax, expected to have been given by the NBFC to your client from time to time?

Sumit Aggarwal (Querist) 20 May 2015
NBFC didn't supply any statement so far. Just few days back, my client requested for statement then NBFC supplied and client came to know about all this.

Please tell me the correct forum to approach for proper adjudication.

Guest (Expert) 20 May 2015
Is he claiming any rebate in income tax?

Sumit Aggarwal (Querist) 24 May 2015
no... Its not about claiming rebate in income tax.

its about NBFC charged excess interest.

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