Aug 19, 2011 11:37 AM
4865 Views
I had taken a personal loan of Rs1 lac from Citi Financial due to some urgent requirement. As per the terms and condition, they agreed to lend me the same at 16% interest annually-reducing for 3 years.My EMI as per their calculations were coming to around Rs4300 pm.
I readily agreed without even calculating and signed the papers. But once I returned home I was stunned to learn that at 16% PA, for 36 months the EMI should be not more tha Rs3650. So where is the catch??? When inquired back at Citi Finance, they told me they calculate it FLAT, ie @16% PA for 3 years its 48%, so my repayable amount is around Rs 1.55 lacs.So again if someone calculate back, at Rs4300 EMI, I am been asked to pay an interest of 30% PA. I am not sure how they are allowed to operate with this kind of obnoxious interest rates? What is RBI doing?Citi Finance guys can you answer this?
