Complaint Details

Status	:	Closed
Complaint No	:	0054798/2015
Category	:	Business & Finance
Date	:	28-10-2015
Subject Line	:	Gold Loan Interest
Complainant	:	Senthil Prabu N
Address	:	22 Portuguese Church Street
Complainee	:	Fed Bank Fast Gold Loan
Address	:	Thambu Chetty Street

Complaint Details
I availed a gold loan with Fed Bank for an amount of 3,26,000 @ 17% p.a.
against 190 grams of gold Unfortunately I was not able to pay both interest and principal for 11 months.
when I contacted the branch for settlement they charged 17% interest for the
first six month and then 36% on the total outstanding of principal and Interest
for the next five months and I told that I need to pay Rs 80,000 as interest to renew the loan
else the gold will be auctioned and I will placed under Sibel if my gold is not enough for
the principal and unimaginable interest on a secured loan.

my understanding 36% of interest on a secured loan is completely unacceptable.

As for as my gold it was moved to aution and no way for me to release it.

But I wanted to take a legal action against the Fed bank which is a subidiary of Federal bank

which is not following the RBI guidelines, please guide me.

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