Loan Interest Rate Changed Without 30-Day Prior Notice
Your bank or NBFC has changed the interest rate on your loan — increasing your EMI or tenure — without giving you at least 30 days prior written notice as required by RBI.
⚖️Your Rights Under RBI Regulations
Lenders must give 30 days written notice before any change in interest rate or charges.
You have the right to close the loan account without penalty during the notice period if you disagree with the change.
Interest charged from the date of change without notice is not lawfully accrued — you can dispute the differential.
💰 What You Can Recover
Refund of excess interest charged between date of rate change and date proper notice should have been given.
⏱ Response Deadline
30 days for response to written complaint.
📋Step-by-Step — What to Do
Document the old rate, new rate, and date of change from your statements.
Write to the lender asking for proof of notice — if they cannot produce it, the change was not properly communicated.
Demand refund of excess interest charged during the notice gap period.
Escalate to Nodal Officer then RBI Ombudsman if unresolved.
🏛 Where to Escalate If Bank Doesn't Respond
RBI Integrated Ombudsman — cms.rbi.org.in
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