Business Maximum Intrest law for NBFS

I have taken Unsecured Business Loan From India Bulls Venture Ltd. on 05/09/2018 and amount is 1517891/- and Rate of Intrest is 22.5% Eff. and monthly EMI is 58363/-. when the sign agreement that time not mention Rate of interest on it. and also we received Welcome letter on date of 02/04/2019 due to many EMAILS and Customer Calls. that time we agreed because of our funding condition are not too supportable. now we trying to do Business Loan Foreclose but now they said if we want to do foreclose then we want to pay 5% extra + 18% GST. is it true???? and 2nd thing is please help us for Find What is The Legal Maximum Rate of interest they charge???? thank you

Answers (1)

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First of all, the loan agreement in which you and India-Bulls have entered into is an Illegal-one. It's mainly because NBFCs' cannot issue Unsecured loans without disclosing Rate of Interest on their Loan-Contracts. and as such, they should follow the RBI Guidelines to tender Secured-loans by securing a Moveable/Immoveab le Asset/Assets or by deducting a portion of fixed amount of money from the Bank Accounts of the Borrower towards the Principal & Interest-Rate separately. However, Interest-Rates need to be Standard & Reasonable ones. Moreover, as the Rate of Interest was not mentioned on the Loan-Agreement, it was a mere illegal agreement & as such, you are entitled to not pay such unjustifiable high-interest rates.

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