Floating rate of interest charged by india bulls
bhawarlal
(Querist) 04 February 2012
This query is : Resolved
WE availed a Mortgage Loan of Rs. 67.00 lacs from M/s. India Bulls Housing Finance Limited dated 9th December 2006. The loan was carrying an interest rate @ 14.5% p.a. and the EMI is fixed as Rs. 93,000 per month.The Interest rate type was Floating as per loan agreement.
The Mortgage Loan was taken for the purpose of meeting some urgent requirement for our business expansion and for starting of a new ventures. But now the interest rate has been drastically and unilaterally increased from 14.5% p.a. to 21.5% p.a., for which we are facing difficulty to repay our loan installment and interest in time.
As per our calculation, we have so far paid 61 installments total amounting to Rs. 60.65 lacs, out of which Principal was repaid Rs. 2.42 lacs & Interest was paid Rs. 58.23 lacs. This exorbitant rate of interest can not be afforded by us anymore.
The periodical increase of rate of interest is just intimated to us by way of letter without any basis of calculation.
Is there any forum where we can represent about this arbitrary act of India Bulls. Can we ask for lower interest as per any formula or basis for increase in rate to reduce our interest cost burden.
prabhakar singh
(Expert) 04 February 2012
You should first ask them in writing to explain how they have come to calculate that rate and if they deny issue notice to file complaint for deficiency in service and in case they reply get it checked ,if found wrong,still file complaint and in case found correct, approach some other institution to retire this loan.
Advocate. Arunagiri
(Expert) 04 February 2012
As per the agreement for charging floating interest, the company is having all such rights to collect the new interest scheme.
If you dont want to continue with that company, you can shift the loan with another company or bank.
Devajyoti Barman
(Expert) 04 February 2012
Without detailed information including relevant papers it is not possible to give proper advice.
If there is grave irregularities you can try your luck in Consumer Forum.
Raj Kumar Makkad
(Expert) 04 February 2012
I do endorse the views of Arunagiri though various facts from your side are sill awaited without which a definite reply cannot be given.
