[Resolved]  Muthoot Gold Loan — Fraud way of interest calculation

Address:

Palakkad, Kerala

Hello All,

This is in order to wake you up against the fraudulent practice of calculating interest in Muthoot Gold Loan.

Here is my unpleasant experience. I had borrowed money from Muthoot finance under their gold loan scheme. The amount I had taken was Rs: 30000/-. After two months my wife went to pay a partial amount of Rs: 12000 and asked them to return back some of the gold we kept. They returned back gold worth Rs: 8000 and told the remaining money is interest. We didn’t really check this that time seriously.

After three months I wanted to take the remaining gold by paying the rest of the money. Then also they were saying a big amount as interest. In fact at that time only I seriously thought on how they are calculating the interest. When I calculated the interest based on the rates and rules Muthoot told, I found a difference of around Rs: 2000/- I approached their office and told them to show me how they are calculating the interest. They were initially reasoning with me for the way they calculated and behaving arrogant. When I told I will complaint against this, they tried to pacify me by saying what they calculated is correct. But I insisted to show me the way they calculated. Finally they agreed that the calculation is wrong and returned back the extra money.

So what I would like to convey here is, beware of the swindling practice behind the way Muthoot calculate the interest on gold loan. They may cheat you and will charge you with some additional amount if you don’t ask them the way they calculate interest.

My inference here is, this may be one of the way Muthoot is growing so fast. i.e by cheating the sleeping customers.

Muthoot is “Motham ooottu” means “Total squeezing”

Thanks & Regards
Prathib
[protected]@yahoo.co.in