How do I find out if my bank added extra years to my home loan?

The two numbers to compare

• The original number of EMIs: it is in your sanction letter or loan agreement (for example, 240 EMIs for 20 years).
• The EMIs left now: your latest loan statement, or the quarterly statement your lender must send you, shows the EMIs left, your EMI and your annual rate.

Do the sum

1. Write down the original number of EMIs.
2. Count the EMIs you have paid so far (your statement lists each one) and add the EMIs left.
3. If the total is more than the original number, the loan has been made longer by the difference. Part-payments you made shorten a loan, so allow for them.
4. Look for a rate-change message from your lender around the date the end date moved.

How a rate rise adds years when the EMI stays the same

What your lender must do

When your loan is sanctioned, your lender must explain how a change in its benchmark rate can change your EMI or your loan years, and must tell you when it does. At each reset (the day your rate is next changed) you must be offered a choice: a higher EMI, more loan years, or both, and the option to pay part of the loan off. Any charge for switching must be disclosed upfront. A longer loan must not leave your EMI below the monthly interest. You must get a quarterly statement showing what you have paid, your EMI, the EMIs left and your yearly rate.

If nobody told you

1. Write to your lender and ask for a statement of every rate reset on your loan, with dates, and what you were told each time. Keep the reference number.
2. If your lender is a bank and there is no reply in 30 days, or the reply does not satisfy you, you can complain to the RBI Ombudsman online at cms.rbi.org.in, within 90 days.
3. If your lender is a housing finance company, complain to the National Housing Bank at grids.nhbonline.org.in after 30 days.