increase in the duration period loan repayment

768 votes

Lower Monthly EMI: Since the total amount is spread over more months/years, your monthly payment (EMI) becomes smaller. Example: 10 lakh loan for 5 years → EMI ₹21,000 Extended to 10 years EMI 13,200 (approx.) 2. Higher Total Interest Payable: Because you're paying for a longer time, you'll end up paying more total interest even though each EMI is smaller. 3. Improved Cash Flow: Easier on your monthly budget - useful if your income has reduced or you have new expenses. 4. Possible Re-negotiation or Restructuring: You may need to request loan restructuring or refinancing from your bank or lender to increase the tenure.

Advocate Mahrukh Khan LawRato

512 votes

you have a strong legal and consumer remedy because unilateral alteration of the loan tenure by a successor entity (Piramal Finance, post-DHFL acquisition) without the borrower’s express consent constitutes a clear case of contractual breach, deficiency in service, and unfair trade practice under the Consumer Protection Act and the RBI’s Fair Practices Code for Lenders. your original loan agreement with DHFL remains binding, and under the Transfer of Assets and Liabilities Framework approved by RBI, any acquiring NBFC or ARC (here, Piramal) is legally obligated to honor the original contractual terms tenure, interest rate, and repayment structure unless mutually renegotiated in writing. Extending an 18-year tenure to 44 years without consent materially alters the contract, violates the principle of informed consent, and can be challenged as a deceptive restructuring. For now immediately send a Legal Notice to Piramal Finance (Head Office and concerned branch) demanding restoration of the original loan tenure and amortization schedule as per the DHFL agreement, citing violation of the RBI’s Fair Practices Code, Consumer Protection Act, and contractual obligations under the Transfer of Undertakings approved by RBI and NCLT. The notice should seek clarification within 15 days and reserve the right to pursue damages for financial injury and mental distress.

Advocate Sanil Sarkar LawRato