Citi Bank Ordered To Refund ₹12.91 Lakh Home Loan Interest

A woman borrowed money from a bank to buy a home and agreed to pay 12% interest.

Later, the bank quietly made her pay more interest, sometimes as much as 16.5%.

That is a lot more than the 12% she agreed to.

The bank also did not tell her about a special rule from India's central bank that could have lowered her payments.

A special court that helps customers complained against banks looked at her case.

The court said the bank was not allowed to raise the interest rate without asking her.

It ordered the bank to give back the extra money it had taken, which was about 12.91 lakh rupees.

The bank also has to pay her extra money for the trouble she went through.

If the bank is too slow to pay, it will have to pay even more interest.

This decision shows that banks must be fair and clear with their customers.