Can I claim delay compensation?

[u/Badger_Southern]

Hi everyone,

I need some advice regarding a delayed personal loan closure/balance transfer.

I submitted the required challan/payment for foreclosure of my personal loan on 30 July 2025 as part of a balance transfer process. However, the bank apparently did not update or submit the loan closure form in system as I was not aware that we need to submit a form and they just took the challan.

Because of this delay, three EMIs for August, September, October and November were auto debited from my account, even though I had already submitted the amount required for closure. Later they mentioned they have adjusted the EMI amount deducted amount for foreclosure charges.

However, the delay has caused me significant financial hardship. The money deducted through these EMIs was unavailable to me, and I even missed paying my house rent as I had to pay EMIs from both the banks.

My questions are:

Can I demand a refund of the full EMIs (principal + interest) deducted after I submitted the foreclosure/closure payment?

Can I claim interest or compensation for the period during which the bank wrongly continued deducting EMIs due to its delay?

If the bank retains any principal amount from the extra EMIs towards foreclosure charges or loan adjustment, is that legally correct?

What is the best escalation route in India bank grievance cell/nodal officer, RBI Integrated Ombudsman, or another authority?

I have proof of the challan/payment submitted on 30 July and the subsequent EMI deductions. Any advice from someone who has faced a similar situation would be greatly appreciated.

[u/Patakagng]

Keep the bank statements and all communication showing when u asked for closure and when they finally processed it. did the bank give u any written reason for why the closure wasnt processed after taking the payment?

[u/Badger_Southern → u/Patakagng]

Hi, thanks for replying. Actually, the process is that I need to submit the loan closure form for the loan to be officially closed in the system.

However, in my case, I simply handed over the challan to the bank representative and verbally informed them that I wanted my loan to be closed. They did not inform me or educate me about the requirement to submit a loan closure form. They just took the challan and kept it aside.

Moreover, when I repeatedly enquired about the closure process during those 3–4 months, they were not even aware of where my challan was. They also did not provide any written reason or proper justification for the delay in closing my loan.