A microfinance company in Margao charged me excessive interest, is that legal?
KA Asked by Kavita Joshi from India
Legal Information
Below is a comprehensive legal analysis based on Indian law for your question.
Microfinance institutions are governed by RBI guidelines and Goa Rent Control Act 1993 regarding fair interest rates and transparency. The Bombay High Court has held that charging usurious interest rates is an unfair trade practice.
In Margao, you can challenge the interest rate before the consumer commission and the RBI ombudsman. The Bombay High Court has directed microfinance lenders to disclose all charges clearly and avoid coercive recovery.
Under Goa Rent Control Act 1993, the commission can order a reduction in interest and refund of excess collected. You should request a detailed statement of account and the loan agreement before filing in Margao.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.