The interest rate made my loan to a very large amount from the one which i borrowed since I could not pay it for some time(I missed some EMI). Now I have money to pay it full, Can I ask bank to allow me to pay original amount lesser than what is outstanding now? eg. loan was 400,000 at 13% p.a rate of interest. Now its more than 650,000. Can I ask bank to give me some relaxation to repay.
They were kind and let you extend the repayment time on the loan. But that does mean additional interest accumulated during that additional time. You agreed to this; you can't change the contract now.
What you can do is find the money to pay off the loan faster, to reduce the total amount of interest you'll be charged.