How do I resolve loan dispute with my lender?

A structured process can help facilitate resolution between a borrower and their lender when there is a dispute over a loan. The steps detailed below may help to reach an amicable resolution:

1. Examine the Loan Agreement: Understand all your obligations by going through the terms and conditions, repayment schedule, and clauses relating to your dispute.
2. Identify the Right Department and Speak to the Lender: Always raise the issue to the relevant department within the lender (Customer Education/ Service or Customer Grievance department). Clearly explain the problem to your lender, with evidence documents, etc. Ask for an explanation or resolution.
3. Use the Lenders Grievance Procedures: Most lenders have an established grievance procedures for borrower complaints. If you feel the matter has not been resolved then proceed to escalate through the lenders grievance system.
4. Escalate to the Relevant Regulator: If you feel the lender dispute is unresolved then borrower can approach the relevant regulator (Banking Ombudsman/RBI).
5. Seek Professional Assistance: If the matter is complex then it may be difficult to proceed without professional or legal assistance. Depending on the nature of the dispute then the borrower may wish to approach a consumer court or a civil court.

Most lenders now have digital portals that a borrower can use to track the status of the complaints that you have made and receive updates from the lender in a timely manner. If the dispute is within the digital lending space then borrowers can rely on a regulator complaint management system like the RBI Complaint Management System to also lodge and follow up registered grievances.