The installments paid by me for last 5years are not adjusted against the principal
tej
(Querist) 11 October 2012
This query is : Resolved
Respected Experts ,
theGe finance has provided loan for purchasing flat. the party has almost paid 9,75000/ against loan of 1200000/taken for 15 years term. in last 5 years even then the GE finance is showing the same principal amount of 1200000/ is it legal?how tha party can ask for one time settlement
the installments paid by me for last 5years are not adjusted against the principal please suggest
ajay sethi
(Expert) 11 October 2012
in case when loan is taken the finance company at time of disbursement forwards a detailed statement as to how the ampount of installment paid is being adjusted aginst interest and principal .
in addtion every years statement is fuurnished to borrower for inomce tax purposes showing the amount of interest paid and principal amount repaid .
cross check these staements .
in the earlier years EMi is adjusted more towards interest payment and lower towards principal amount .
.
K.K.Ganguly
(Expert) 12 October 2012
One Time Settlement is not a right of the borrower. It is the prerogative of the lender.
The lending Banks adjust the interest portion first leaving the principal amount to be recovered later on. If you want to prepay the loan amount, the Bank will restructure the payment schedule readjusting the apportionment towards principal amount & interest which will be for a shorter period due to pre-payment.
Isaac Gabriel
(Expert) 12 October 2012
You can check the correctness by obtaining the ledger extract.Principal would be credited only if the interest portion is cleared.
tej
(Querist) 12 October 2012
Details of the case which were remained to be given are as folllows
in all i have paid 63 install ments. initially 192 installments were calculated for 1290000/ loan amount@9.50% in 1 st Jan 2007 there afterthen they have send that due to increase in rate of interest i.e 11.76% from april 2008 your instllments will now be 322.
and now after 63 months they are showing that they have credited Rs.60000/towards principal and 7,61000/ towards interest.as per there letter i will require to pay installments of 13094/ till 2034.
for one time settlement Ge money is asking to pay 1280000/
Is this offer is not harsh.
i have heard that all banks have reduced there interest rates on home loan then will it not be applicable to me?
please guide me because at this time all my income sources are almost blocked and i am not in position to pay installments. my friends are ready to pay one time settllement only upto Rs.800000/ how should i get rid of this problem? great tension.
please guide me
thanks
