Interest charged without any intimation or Reminder .

Hello Sir/ Mam,

Kindly help me out with the problem mentioned below in the E-mail which i have already sent across to Muthoot Finance Ltd. ( Nehru Place Branch, New Delhi)


This is in reference with the Loan against Gold ( PL No- 39053) for Rs 44,300,taken from Muthoot Finance Ltd- Shop No 101, First Floor,78 Guru Amardas Bhawan, Nehru Place, New Delhi -110019 on (24.Jan.12). I must say that i am very dissatisfied and shocked to see the kind of Services and practice they are following............

Although i had taken this loan and was supposed to pay interest , however this got restricted till my Loan Token Receipt only which means i could remember only that way back i had taken a Gold Loan from them, other than this i did not remember anything else. As Muthoot is not the only company...we have other companies/ banks to look after as well.

Let me Explain how and why......

I was under the impression that the Company will send us monthly reminder or alerts via Message /E- Mail / Letter / a phone call or any other mode of communication so that the client is updated on monthly basis. However the same did not happen here ever. I mean not even a Single phone call or any kind of Reminder / Intimation.........Is it too much to ask for....? and then Company wants the Interest to be earned as Income....what for......????


I went clueless to Nehru Place Branch on 29.Sep.12 , trying to figure out how much my interest must have been now and unable to calculate the interest part myself as i didn't had the Loan Token Receipt.

Somehow when i interacted with one of the Female team member over there, i simply asked her...." Mam, your company never inform / remind client like us for the Interest Amount which need to be deposited as per the Slab. Don't you think Company should follow this practice so that client do not end up paying you more in terms of Interest payment in the end as a whole...? ( As the slab is changed)....

On this she replied that it's entirely Client's responsibility to deposit the Interest as per slab as they have the Loan Token Receipt and moreover we do keep on Informing / Reminding them regarding the same. On this i replied- But i haven't got any message / alerts /any letter which intimates me the same....EVER....!!!!! The team member again said that it's Client's duty, not ours.....??

After that i asked her that how much am i supposed to pay till date as my Interest Amount...? So, she went ahead and got my file from the Custody, where in i got shocked to see that my Loan Token Receipt is lying with them since the disbursement of my Loan, which means since Jan'12. What is it doing there.....? ( Getting Interest earned for the company i guess.....!!! )

Coming across this i got annoyed and asked her ...what's the matter..? why didn't you handed over this Loan Token Receipt to me earlier..? Had i got that earlier i would have been paying the Interest timely..!!! On this she replied after the loan is disbursed, and client gets their cash its only Client's duty to ensure that he has the Receipt, not ours. On this i asked her can i take it this way that in order to earn Interest only and to make income, company never ever informs the client on monthly basis and take them for granted....she replied- Yes, you may take it. (Which chapter of Business Law or Company law states it....?)

(I have the Complete Voice Recording for the same).

I rushed to the Branch Head Mr. Akhil after this and informed him the whole incident.

Now first of all, i want to ask the management that what kind of employee have been placed in Branches....? Are they trained or groomed on certain benchmarks or not. I guess they are working for the one of the reputed NBFC's, i.e Muthoot Finance Ltd.

And secondly i do not feel that i should be paying Rs 11,366 as Interest Payment to them as i did not have any instrument like Loan Token Receipt since beginning, and nobody from the Company ever bothered to intimate me on a monthly or quarterly basis which most of the other Banks or Telecom Companies does very efficiently.

So, i have a very strong appeal to be made that my Interest Amount of Approx. Rs 11.366 should be straight away Waived Off as there is adeficiency and a non-seriousness in the management's practice, not in my intention or behavior. ( "Without an arrest warrant even an Accused will not accompany the Cops").

So the management must take this into Serious Consideration and must Waive off the Interest or else I would end up writing / approaching to the Concerned authorities like RBI, Company Law Board (CLB ) or Consumer Forum or file a Civil Suit in a Court of Law .

Look forward for the approval within 48 hours.

At the end i have complete faith in Muthoot Group and i do expect they will understand my intention behind it and would co-operate accordingly.

Look forward to a Positive Response.

Thanks & Regards
Nitin Ambardar
+91 9873 180386