Bank gave more Personal Laon than applied for !

POSTED BY Vishal Sharma ON November 26, 2013 8:59 am COMMENTS (4)

I am having pre existing personal loan outstanding of 1.9 Lacs. Now I want some 1.5 lac cash so I applied for topup loan of 3.5 lacs (Closing the existing one). Bank people have by mistake given 4.1 Lacs instead of 3.5 Lac, which is already credit in my account. I have to pay around 10000/- EMI

Questions:

1. Is it possible to deduct the already credit amount from Bank side?

2. I will be paying lot of money for EMI and very less amount will be leftout for monthly expenses. How can I use the extra money provided in personal loan to generate some money to addup for monthly expenses?

Thanks in Advance!!

4 replies on this article “Bank gave more Personal Laon than applied for !”

  1. Credexpert says:

    Dear Mr. Sharma,

    As mentioned earlier, you should not be using borrowed funds to generate any profits since you would be paying high interest on the personal loan. Also you have specified that after the payment of EMI you have very less amount left for monthly expenses.

    We would suggest that you approach the bank and resolve this error.

    Regards,
    Credexpert
    http://www.credexpert.in

  2. ashalanshu says:

    Dear Vishal, if it’s Bank Executive’s fault, why do you want to pay for it through interest on not demanded 60K extra amount. Please ask bank to rectify the mistake and it ‘ll help you to reduce the EMI outgo also and thus it ‘ll improve your cashflow.

    Thanks

    Ashal

  3. Vishal Sharma says:

    Thanks for your response.

    It was mistake from the Bank executive who submitted the file. But the loan amount already credited in my account.
    Just in case of there is no way to return the extra amount to bank, where can I use the amount to generate some cash?

  4. Credexpert says:

    Dear Mr. Sharma,

    If the loan amount applied by you is of ₹ 3.5 lacs and not ₹ 4.1 lacs, then the same should be brought to the notice of the bank. Kindly check your Application form and also confirm if you had accepted the bank’s offer of disbursing ₹ 4.1 lacs instead of ₹ 3.5 lacs

    Rightly so the disbursed loan of ₹ 4.1 lacs (EMI of Rs. 10,000/-) could be a burden on your cash flow. Investing borrowed funds to generate a return would not be a good option since personal loans are high interest loans (approx. 14 -15% p.a). Any return earned by investing this amount could earn you lesser profit than the interest outgo.

    Regards,
    Credexpert
    http://www.credexpert.in

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