Date of Incident: 20-Mar-2018
Sub: Wrong calculation on loan interest / EMI Calculation
My uncle has taken a loan from ” Five Star Business Finance Ltd” Karimnagar Branch an year back and as per the agreement, interest rate was concluded with 16% P.A and for the loan amount of 500000/- INR.
Later after an year, we released “Five Star Business Finance Ltd” is been charging more than decided rate of interest. Please find the details below.
Loan Amount : 500000
Tenure: 84 Months
Interest Rate : 16%
With the above rate of intrest, EMI must be 9931 INR per Month
But “Five Star Business Finance Ltd” is charging 12620 INR Per Month and it comes close to 25% P.A (rate of interest) [Please refer the attachment, i have enclosed some sample calculation using EMI Calculator]
Which is totally inaccurate in the calculations and they cheating customers using there innocence and if we open-up by asking statement/ balance details, then next minute they will turn rude and start abusing with un-parliamentary behavior and also they are not willing to share those details with customer.
We request consumer forum for justices and we have strong hope on you. Please do the needful.
Your Faithfully
Pradeep