Interst on loan

Pramod Kumar Mangaraj (Querist) 19 September 2015 This query is : Resolved
Dear Sir,
I had taken loan from Government of Odisha as a government employee which was not paid in due time. After my retirement, the Government is charging me the interest on the loan amount which is more than the principal amount. Is it correct?
with regards,
Mangaraj

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Anirudh (Expert) 19 September 2015
They will be charging the interest only on the outstanding amount.
There is no rule that the interest cannot exceed the principal amount.
Therefore unless there is any error in calculation of interest as per the agreed rate, you cannot object.