A microfinance company in Nashik charged me excessive interest, is that legal?

Detailed Legal Analysis

Microfinance institutions are governed by RBI guidelines and Maharashtra Rent Control Act 1999 regarding fair interest rates and transparency. The Bombay High Court has held that charging usurious interest rates is an unfair trade practice.

In Nashik, 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 Maharashtra Rent Control Act 1999, 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 Nashik.