• Loan disbursed at double interest rate of what was promised

Hi, 
I took a personal loan of 3,60,000 from company called Stashfin located in Delhi. Initially they promised me to be disbursed at 12% PA however it was disbursed at 26% PA. I came to know about it when i calculated myself after a month and by that time the money I had already used. I kept writing emails calling back and forth tocorrect my rate of intrest but to no avail. I kept paying EMI for 8 months so that my cibil score doesnt get affected however I stopped their nach mandate from my bank. Can I sue them for charging me exortibant amount and causing me mental and financial stress? I have a good cibil score with a decent salary and already have 2 loans totalling 25 lakhs at 11.5% & 11.75% respectively.
Asked 12 days ago in Civil Law from Delhi, Delhi

There must be loan agreement in which interest must be mention ?

Charging such exorbitant interest rate is violation of RBI distention and unfair trade practice. Complain to RBI. 

IS this a NBFC ?

Yogendra Singh Rajawat
Advocate, Jaipur
14612 Answers
19 Consultations

4.6 on 5.0

Dear Querist, 

If the loan agreement between you and the stashfin has clearly stated the interest on the loan amount, which is different as to what they are charging you, then you can definitely initiate a legal proceedings against them. Either it be a criminal or civil proceedings. You can sue them for criminal breach of trust, cheating and criminal misappropriation. It is recommended to send them a legal notice first so that they can be intimated that the legal proceedings are on their way in case they dont rectify and reimburse you, then it will be acting as a good evidence on their lapse. 

Hopes this solves your query. You can contact me for the case and legal notice

Regards, 

YUGANSHU SHARMA 

ADVOCATE 

DELHI HIGH COURT

Yuganshu Sharma
Advocate, New Delhi
151 Answers
1 Consultation

5.0 on 5.0

If there is variation between the interest mentioned in the loan agreement and the charged by them, you can file a complaint against them for deficiency of services and unfair trade practices adopted by them and consumer court under Consumer Protection Act, 1986.

Please state us to what does the loan agreement say regarding the interest?

Siddharth Jain
Advocate, New Delhi
4978 Answers
55 Consultations

5.0 on 5.0

you should repay the loan . close the account 

 

2) do you have any documentary evidence that loan was promised at 12 per cent per annum. kindly clarify 

Ajay Sethi
Advocate, Mumbai
69042 Answers
4153 Consultations

5.0 on 5.0

Dear Sir,

According to money lending act, you cannot charge more than 21% in interest if you're lending through the RBI regulated means.

Netravathi Kalaskar
Advocate, Bengaluru
3811 Answers
18 Consultations

5.0 on 5.0

See you can file a consumer complaint before the district consumer forum for this malpractice of the company , present the record before the court that you were promised lower rate of interest and then at time of disbursement they charged you wrongly.

Shubham Jhajharia
Advocate, Ahmedabad
20900 Answers
81 Consultations

5.0 on 5.0

You say that the company is charging you an exorbitant interest contradicting to the assured rate of interest.

What is the evidence you have that the company agreed to lend yo the amount at the rate of interest you have specified?

Have you issued a notice to the company demanding to reverse the rate of interest from the current rate to the promised rate?

Other than sending emails or phone calls, did you take any efforts to reduce the rate of interest, instead you have started paying the EMI, which is an indication that you have agreed to the rate of interest charged by the company, therefore how are going to handle this situation?

Anyway discuss with a local advocate and plan to take legal steps either to reverse the rate of interest or to close the loan if they dont agree to your request or demand.

 

T Kalaiselvan
Advocate, Vellore
58873 Answers
746 Consultations

5.0 on 5.0

Yes you can go against them before consumer court as it is a financial institution and service provider

Prashant Nayak
Advocate, Mumbai
14521 Answers
24 Consultations

4.6 on 5.0

if you have copy of loan agreement that rate of interest at 12% per annum then you can file complaint before district consumer court for defeincy of services against company. 

Mohammed Mujeeb
Advocate, Hyderabad
11745 Answers
4 Consultations

4.5 on 5.0

Yes you can file suit against them for charging interest rate at exorbitant rates.

You should file suit in consumer forum against the lending company. 

Mohit Kapoor
Advocate, Rohtak
4800 Answers
1 Consultation

5.0 on 5.0

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