Kindly guide me regarding rate of interest for Personal Loan.
As i don't know much about personal loan, but i required very urgenetly the amount to clear off my personal debts. for which i haven't inquired much and also my job was on contract basis, hence i opted for this bank as other bank was not giving me loan as i was not on company rolls.
I have taken Personal Loan of Rs.52,500/- for a period of 2 yeras from a Private reputed Finance Company in the month of Sept 2011.
For which i have received approx Rs.46,500/- ( Rs.6,000/- for Processing & other fees ).
now i was paying 24 EMI was Rs.3,522/- pm which comes to Rs.84,528/- for 02 years i.e. i am paying Rs.38,028/- excess for 02 years.
now, till date i have paid 17 EMI of Rs.3,522/- ( Rs.59,874/- paid and pending 07 EMI of Rs.3,522/- ( which comes around Rs.24,654/- ).
Hence, i was unaffordable to continue this personal loan, so i further took loan from relative Rs.25,000/- and cleared off the personal loan day before yesterdayOn inquiring the amount came to Rs.25,508/- for final settlement
Hence i have paid in total Rs.85,382/- against loan amount Rs.46,500/- ( actual recd ) for 18 months. i.e. nearly double the amount in nearly 02 years.
Now how will common man survive, he will either commit suicide paying this type of EMI for personal loan.
Just i want to inquire whether this rate of interest is as per RBI guidelines.
i have quoted them, but they haven't given feedback.
Please guide me.