I have taken loan of Rs 50lak from Sriram finance against property and made the registration in that they mentioned 17&27.5 both intrest rate in that Mod. I was asked to pay 152250 as EMI amount..I asked why high EMI for 5years,at that time they said it will be closed in 4years itself (false promise by the agent) I thought it was for 4years . But in sanction letter it declares 5years at intrest rate of 27.5 EMI amount 152250. I wanted to know Wheather there is any cap on maximum intrest rate charged by NBFc against Mortgage loan under RBI / Indian Law
The Reserve Bank has not prescribed any ceiling on interest rate that can be charged by an NBFC. The interest rate chargeable, on all loans including loans against Gold Ornaments, is governed by the terms and conditions of the loan agreement entered into between the borrower and the NBFC.
Yes there is a cap of the interest rate regulated by RBI
There are no guidelines by RBI putting cap on interests charged by Scheduled Banks or NBFC or on compounding of interest. But where two rates of interests are mentioned, the borrower is liable to be charged with lower rate of interest. Financer cannot charge you interest at the rate of 27.5, you are liable to pay at the rate of 17 percent. You can approach District Consumer Commission in this regard. You are a consumer under new Consumer Protection Act, 2019. You can also approach civil court under Section 3 (1) (a) Usurious Loans Act, 1918 claiming that the interest is excessive.
The interest rate charged by NBFCs on personal loans are competitive and range between 10.99% p.a. to 36,00% p.a. You may generally avail a loan amount of up to Rs. 25 lakh or even more with processing fee ranging between 2% and 3% of the loan amount.
However, you must compare the personal schemes offered by different NBFC’s before applying for the one suitable for you.
Going by the RBI notification, the lower of the two interest rates would be as follows:
Dear Client,
Yes, an NBFC-MFI can charge a differential rate of interest to its customers but the variance for individual loans between the minimum and maximum interest rate cannot exceed 4 per cent.
Thanks & Regards
