23 October 2009
One of the client in my firm has taken a Home Loan in citi financials in the year 2005. the loan amount taken was 3000000/- and the EMI is 41250/- for a tenure of 144 months i.e., 12 years. our client approched the financier for pre-closure of the loan, the financier has increased the tenure to 194 months instead of 144 months resulting in 50 months excess payment of Rs 41250/- per EMI. Our client when enquired about this, he got the reply that the no.of EMI`s were increased due to rise in interest rates? now my question is " how financier can alter the interest rate and the no.of EMI`s when the instalment is fixed on MONTHLY EQUATED INSTALMENTS"
CAclubindia
