A microfinance company in Shillong charged me excessive interest, is that legal?
PA Asked by Parul Banerjee 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 Meghalaya Rent Control Act 2014 regarding fair interest rates and transparency. The Meghalaya High Court has held that charging usurious interest rates is an unfair trade practice.
In Shillong, you can challenge the interest rate before the consumer commission and the RBI ombudsman. The Meghalaya High Court has directed microfinance lenders to disclose all charges clearly and avoid coercive recovery.
Under Meghalaya Rent Control Act 2014, 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 Shillong.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.