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Nbfc

Harpreet Singh (14 Points)

25 May 2016

NBFC charging high rate of interest what to do?

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8 Replies

Manish Jain (Chartered Accountant) (119 Points)
Replied 25 May 2016

Don't borrow from them.

Management of NBFCs are allowed to determine the interest rates to be charged (though it shouldn't be less than the prevailing base rate).

You can negotiate with them for the interest rates if you have a good credit track record or search for some other lender.

Harpreet Singh (14 Points)
Replied 30 May 2016

RBI reducing rates five times last year & once current year the cost of funds must have gone down. But my ROI remains unchanged. l have taken (LAP ) from nbfc. what to do to get it reduced from them?

Manish Jain (Chartered Accountant) (119 Points)
Replied 30 May 2016

If you have borrowed the loan at Fixed Interest Rate, the changes in interest rates by RBI will not affect your cost of borrowing. If need to have a loan at Floating Interest Rate, only then will the changes affect your cost of borrowing.

Harpreet Singh (14 Points)
Replied 30 May 2016

I have borrowed it on floating rate.

Manish Jain (Chartered Accountant) (119 Points)
Replied 30 May 2016

Please communicate with the NBFC officials then. You can also get your loan account transferred to another NBFC offering better interest rate by paying a small processing fee.

Harpreet Singh (14 Points)
Replied 30 May 2016

I am talking to them for last one year, but I have not received any response from them. Secondly if I transfer my loan from them now I have to pay them more because of increased ROI. I was given loan at9.99%& now they're charging13.71%.

Manish Jain (Chartered Accountant) (119 Points)
Replied 30 May 2016

I don't understand what's the issue then?

9.99% is very cheap.

Harpreet Singh (14 Points)
Replied 30 May 2016

I mailed them on 29-05 2016 telling them that I am desperate for rate drop for the last one year, and the reply I got today is that they are aware of my problem & they are working on it. Does it take nearly one year to solve this problem? Kindly enlighten me?