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.

  • 1
    You can ask anything, whether or not they'll accept is an entirely different story. – quid Apr 27 '16 at 22:06
  • can you add a country tag? – JTP - Apologise to Monica Apr 28 '16 at 0:09
  • India@JoeTaxpayer – asd Apr 28 '16 at 15:55

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.

| improve this answer | |
  • But is it fair to take around more than 50% interest on the whole amount? – asd Apr 28 '16 at 15:23
  • 1
    @asd Sure. That money was not available to them, likely for some time, which cost them the ability to invest it in other profitable manners. You agreed to these terms. – ceejayoz Apr 28 '16 at 23:22
  • 2
    Fair or not, it's the deal you signed. Yes, your current balance is 62.5% higher than your initial balance, but to get to that point, at the interest rate you specified, it would have taken at least 4 years without making a payment (if my math is correct). The amount of money you'd have had to pay each year to the loan is > 2,000 to start reducing the principal. Now, you have to pay > 84,500 before you reach the principal again (assuming they make you pay off the interest first). – user27283 Apr 28 '16 at 23:22
  • "More than 50%" is irrelevant; that's the result of your taking a long time ( and then an even longer time) to pay off the loan, at a relatively high rate of interest -- but you considered that rate and that time reasonable or you wouldn't have taken the loian. You selected it, you bought it, you get to pay for it. That's fair by definition. – keshlam Apr 28 '16 at 23:36

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.