Interest on npa account

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This query is : Resolved

Deepak (Querist)

04 March 2013 My account was declared NPA on 1/1/2010 with outstanding of Rs 73 Lacs.
After that I paid Rs 49 Lacs by selling my assets and by borrowing money from friends till 31/3/2012. I was allowed banking operations during this tenure.

Now bank is asking Rs. 60 Lacs again and had adjusted all my previous payments in interest and penalties.

After NPA can Bank charge 17% compounded monthy interest...?

If no than how can I get it corrected.

Deepak

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

04 March 2013 Which loan you have taken. As well as it may be 17% of interest because of It charges Regular interest + Penal Interest + any other charges etc... So let me know which loan you have taken and what is the interest rate etc.... The interest will be depending on the overdue of your installments.

OM SAI SRI SAI JAI JAI SAI

Deepak

Deepak (Querist)

04 March 2013 Thanks..
It is just CC and Term Loan. 30 Lacs CC and 45 Lacs Term Loan from Nationalised Bank.

Deepak

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

04 March 2013 Then charging of 17% is normal because of at present CC and term loan interest rates are starting from 13 or 14 (as per SBI) then including penal interest it may be 17%. You are saying you are account became as NPA on 1-1-2010 i.e i think your accounts will be irregular since 4 to 5 years i.e may be from 2008 depending on the term of EMI etc.... So i think 36 lacs adjusting to the Interest is common and you are said you repaid amount on 31-3-2012 i.e till now almost one year over so for this one year interest also added to your liability. So is proper and no doubting will arises however banks have their own software which is calculate interest automatically and charges if you have any doubt regarding the computation of interest then you can take the account copy for the periods and collect interest rates are in force for that period and make interest calculation your self if know how to do otherwise consult any expert as well as you can also request the bank to interest calculation details etc...

OM SAI SRI SAI JAI JAI SAI

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