• Bank made mistake in calculating my EMI


I need help with my education loan. I borrowed INR 600,000 from the Oriental Bank of Commerce in 2006, payable in 84 installments, starting in 2008. I paid all my installments on time. But the bank now claims that have INR 250,000 outstanding as they (the Bank) had incorrectly calculated by EMI in 2006. The loan agreement clearly states that the EMI amount and the term. 

Do I have any recourse to this? Why should I pay for the bank's mistake it is not my fault that the incorrectly calculated the EMI. Moreover, the bank informed me of their error in 2015.

Asked 2 years ago in Civil Law from United States
Has the bank issued you a notice to claim the recovery? If yes is the answer then reply to it through your lawyer. Unless the bank files a lawsuit for recovery in the court there is nothing you are required to do. If it files the case then contest it fittingly. 
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

1) you are only bound to pay the EMI for loan availed by you  as per loan agreement 

2) bank has to suffer if loan amount instalment hss been wrongly calculated 
Ajay Sethi
Advocate, Mumbai
45700 Answers
2688 Consultations

5.0 on 5.0

Do I have any recourse to this? Why should I pay for the bank's mistake it is not my fault that the incorrectly calculated the EMI. Moreover, the bank informed me of their error in 2015.
You may ask the bank to furnish the EMI calculation and also verify the repayment details and confirm if there are any mistake in calculation of EMI by the bank and whether you are liable for the same.
Since you have not done any mistake and had been very sincere in the repayment also that you have paid the entire loan amount with the interest thereon, you should not accept the liability and should make representation to the higher office giving details and seek their intervention to and discretion to waive the excess amount now demanded. 
If they do not agree or you dont get any proper response or the relief is not in sight, you may approach banking ombudsman for redressal of your grievance.
If your grievances are still not redressed, you may approach consumer forum seeking compensation for the mental stress caused by the bankers due to their wrong calculations and attitude to the customers which amounts to deficiency of service and to direct the bank to waive the excess amount now demanded. 
Consult a lawyer and discuss the issue in detail before you initiate any legal action other than approaching bank higher official seeking to waive the demanded excess amount 
T Kalaiselvan
Advocate, Vellore
35869 Answers
390 Consultations

5.0 on 5.0

offcourse you have. If the bank has given you a written amount then the bank is estopped from claiming any further.

even though the courts are soft on banks and there are precedents where the courts have held that a mistake of the employee cannot be used to stop a public institution from claiming public money, you still have a very good case. 

you need a relief minded judge but an even better lawyer. These litigations can get slightly tricky so chose your lawyer carefully.
Saptarshi Banerjee
Advocate, Kolkata
220 Answers
4 Consultations

4.5 on 5.0

Hi, Pls let me know whether bank has given loan clearance certificate if they provide loan clearance certificate to you then they can't do anything.

2. Don't pay anything to the Bank, if they demand the amount through notice you can reply accordingly.

3. You can also file a consumer complaint against bank for deficiency of services.
Pradeep Bharathipura
Advocate, Bangalore
4551 Answers
203 Consultations

4.5 on 5.0

You are liable to pay only the amounts  that is stated in loan agreement . 
The bank cannot take recourse under the guise of internal mistake and pass them on to you. 
If the bank is doing it(stating there is a mistake), it is then a FRAUD being committed by bank and the bank is liable for prosecution under both criminal and civil laws. 

The claim (mistake in loan agreement) of the bank in 2015 for an educational loan availed in 2006 is barred by law of limitation as bank had time till 2009 ( 3 years as per law of limitation to rectify the loan agreement). 

If at all there is a mistake, the bank should bear the loss on its book of accounts.  The bank CANNOT claim it from you in any circumstances.

You should file a complaint with banking ombudsman and get your grievance resolved.  
We are  confident that upon you filing your complaint to ombudsman, your issue will get resolved in your favour  in 90 days.
Hope this helps
Rajgopalan Sripathi
Advocate, Hyderabad
1307 Answers
161 Consultations

5.0 on 5.0

1. You can write to Bank's Ombudsman against the Bank for charging amount in excess of hat was agreed by both of you,

2. However, if there is a printing or clerical  mistake, Court will pass order in favour of the Bank. 
Krishna Kishore Ganguly
Advocate, Kolkata
18535 Answers
449 Consultations

5.0 on 5.0

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