Dear Sir
I have availed a consumer loan of Rs 75000/- @ 19.25% interest Flat per annum ( to be charged on reducing balance of the principal outstanding amount over the tennure of the loan)from city financial dt 29 Mar 07 and paid 33 instalment of Rs 2989/- each every month. The citifinancial consumer finance india ltd has imposed Flat rate interst for 42 month and made EMI of Rs 2989/- each (75000 X 19.25% X 3.5 =50551 (interest Plus principal 75000) = 125551 divided by 42 = 2989 )

Sir, my contention is that it is flat rate not flat rate per annum as stated above and there is NO element of interest to be charged on reducing balance as per aggreement.
Pl advise
SAMRA