Excess loan amount debited?

Question

We have received a vehicle loan in BANK on 22.03.2010 in the name of  the respective A/C no is CVEHI/01/90004. The loan amount was Rs.8, 00, 000/- and the rate of interest was 11%, the EMI was Rs.17, 400/- per month for 60 months. We have paid 61 months of installment but our account was not closed and it shown excess due. In order to cancel our hypothecation, we have paid that excess amount and closed our account. The statement which we got from bank shows compound interest for our vehicle loan. The total amount we supposed to pay is Rs.10, 73, 716/- but the total amount we paid is Rs.11, 20, 756/-. We request and gave letter to branch manager on 03.09.2015 to verify our account and repay the excess amount we paid. We have calculated the account for the said rate of interest* and attached the copy for him reference also.But no response from the bank till. So i sent mail to deputy general manager on NOV6th 2015 and attach the copy of letter which was already submitted the bank. Please take necessary action to resolve the issue as soon as possible early. 
 

Answer 1

Hi Subhanandani,

At the outset, let me clarify that this site is designed by a group of senior Banking Professionals to assist Bank Customers at large to provide guidance for resolution of any complain/query/grievance in respect of financial services. This site does not belong to any Bank or a regulator, which may please be noted.

As regards your complaint, your bank is duty bound to clarify your doubts with regard to recovery of excess interest on your loan account, as claimed by you. Since you have   escalated your grievance to a senior functionary of your bank very recently I would suggest you to wait another week. In case you don’t receive a response or you are not satisfied with the response, it would be appropriate for you to take up with the Banking Ombudsman through a letter or email,  for quick, effective  and hassle free resolution of your grievance.

For address of the Office of the Banking Ombudsman, Area of Operation (jurisdiction) and the procedure for lodging complaint, you may access the website https://bankingombudsman.rbi.org.in/

 

Regards

 

J R Mohandas