Hot Deal

[URGENT HELP NEEDED]

486°
Finance Ninja
Tanmayyy

A family member of mine had taken a loan on property from the NBFC IIFL a few years ago.

Last year when rbi announced emi monitarium , they made use of the extension and opted to not pay the emi for 5 months and pay interest on it later.

Now IIFL has revised the loan term to adjust those 5 emis and has extended the loan term by a whopping 26 more emis! Those 5 emis which amounted to around 5lakh total has now become 26 lakhs somehow. They have also increased the interest rate of the loan to 17.5%.
He has tried approaching IIFL to get this resolved but they are denying giving any help.

How can he get out of this trap? Is there something he can legally do?


Please also tag any knowledgeable person you know.


52 Comments  |  
23 Dimers
  • Sort By
Finance Ninja Finance Ninja
Link Copied

@Siddhartha07

View 5 more replies
Entertainer Entertainer
Link Copied

Nbfc aahh…they are looters…
He should ask bank manager/representative for negotiation ..
He should meet som lawyer for better assistance.

Finance Ninja Finance Ninja
Link Copied

He tried negotiating but they are denying any and all help. The lawyer we know is currently not in Delhi and will be coming back on Wednesday so we want to get as much help/knowledge as possible till then.

View 1 more reply
The PostMighty The PostMighty
Link Copied

Broo..i can feel youu…. Indiabulls is doing samee shit!! I don’t think there is much we can do on this. I am not knowledgeable on all these but What I am planning is to take LAP for x amount from a normal bank (Idk exact term called but these axis kotak etc) & pre pay these Indiabulls loan & close this shit once & for all.

Entertainer Entertainer
Link Copied

My friend had a loan wid AU bank, after same kind of shit, he cleared all his dues in one shot and get himself rid of these looters.

View 3 more replies
Finance Ninja Finance Ninja
Link Copied

Can the rbi ombudsman be of any help in this case?

Entertainer Entertainer
Link Copied

Rbi is blind, they do any help..but give it a try.

View 5 more replies
Deal Subedar Deal Subedar
Link Copied

I have no much understanding of the moratorium but letting people take that last year or so did not ever mean they are exempt from paying and interest is still stacked. I think there were many opinions online as to why the moratorium should not be availed if possible.

Finance Ninja Finance Ninja
Link Copied

I understand but his situation last year was not good so he wouldn’t have been able to pay those emis anyways. But making that amount 5 times it’s actual amount is senseless.

Generous Generous
Link Copied

Mine is different case but we ended up paying 2.5 EMI extra. We had a Business loan of 20 Lacs in SCB and we took moratorium for 3 months. We had pending EMI of 12 months but ended up paying 2 extra EMIs and then again got mail that we had to pay interest which again worked out to around 46k (EMI was 1.05lacs). So, a loot of around 2 Lacs for 3 months moratorium.

Fight with them coz what you are saying is totally unacceptable. Approach RBI with good lawyer, you should be able to negotiate.

Finance Ninja Finance Ninja
Link Copied

Were you able to negotiate with scb for your case? Did they provide atleast any kind of relief or help?

View 1 more reply
Finance Ninja Finance Ninja
Link Copied

Thanks bro , appreciate the help

Deal Cadet Deal Cadet
Link Copied

 Whether you opt for tenure extension or a moratorium on EMI or principal repayment it will result in overall higher interest outgo. This is because a lesser or no principal repayment during the moratorium or extended period will lead to higher outstanding for a longer period. Therefore, the interest that is charged on this higher outstanding will be higher.(What was previous rate before hiked to 17.5%?)

The only way you can minimise the additional interest payment is that you should have served at least the interest during the short moratorium and restructure the loan in such a way that it gets repaid within the original tenure.

Finance Ninja Finance Ninja
Link Copied

So is there anything that can be done?

View 1 more reply
Deal Cadet Deal Cadet
Link Copied

Transfer loan to some other bank like axis to reduce roi… There current roi is 6.75 % on home loans

Finance Ninja Finance Ninja
Link Copied

It’s a loan against property bro , not a home loan

View 2 more replies
Deal Cadet Deal Cadet
Link Copied

If you are ready to take a hit on CIBIL, do dm me
I will tell you a way

Helpful Helpful
Link Copied

its a loan against property..

Benevolent Benevolent
Link Copied

RBI was  very clear that in case someone opts for moratorium, interest WILL NOT be waived off and will accrue on the total outstanding. So that is legally payable and any lawyer who claims otherwise is a conman.

However, the increase in the rate of interest is something that can be contested. One option is to shift the loan to another bank/nbfc at lower rate of interest. 

Critic Critic
Link Copied

As others suggested, better to shift to another bank(heard icici loan terms & overall service is better).

@Ramta_Jogi

Tech Guru Tech Guru
Link Copied

Really scary shit.

Can anyone please help me understand how outstanding amount of 5L can become 26L


@Tanmayyy - " Those 5 emis which amounted to around 5lakh total has now become 26 lakhs somehow "

How is this even possible. Please explain / help to understand.

Finance Ninja Finance Ninja
Link Copied

Our understanding of it is that they are charging 7 years worth of interest on those 5 emis as the emis have been added to the end of the loan term which was remaining for 7 years.

View 5 more replies
Finance Mentor Finance Mentor
Link Copied

How can an outstanding amount of 5L become 26L?!?

Deal Captain Deal Captain
Link Copied

I also had same doubt. There must be some foul play. Enforcement agencies should be alarmed by the person who was charged that kind of interest.

View 1 more reply
Deal Subedar Deal Subedar
Link Copied

try reaching higher authority and last resort is RBI; Banking ombudsman

Generous Generous
Link Copied

This is very much possible
Assume his principle outstanding was 50L @ 16% p.a. which gives emi of 99300 for 84 months
During moratorium 5 months simple interest was accrued which comes to 3.33L @ 16% p.a.
So now with outstanding of 53.33L @ 17.5% with sane emi of 99300 it takes 106 months to repay.
So total 22 months more than original. (actually 22+5 months more on timeline to end loan than original expected date)

replyuser
Click here to reply
Reply