Bringing this back from the dead because I'm having the exact same issue but can't really decipher what the solution was.
My handle is not stuck or rusted because it moves freely for a cm or two, but wont pull out. I see the 'keyhole' in the tab, but don't see anywhere on the rod that fits through there. The handle also won't twist at all.
Where did you tap with a hammer? Where were you prying?
Thanks!
When installing, the handle turns around a certain amount after the tab is thru the little keyhole........make sense so far?
After that "certain amount", it locks into the underside of the little plate......
If it won't move enough to unlock & then be able to back up out of the keyhole, you may have to turn it with a screwdriver thru the loop of the handle, gently, but enough to loosen things up.......
Hope all that makes sense..............