[Resolved]  Federal Bank / Fedfina — Home Loan processing fee refund refused

Address:

Thane, Maharashtra

It was advise from one of my wife's coworker that I had gone to Federal Bank's Home loan. I suspected and didn't wish to go for this loan because of this bank's bad reputation seen on this Internet website and other places. However, I trusted on loan processing guy from Federal Bank's subsidiary FedFina only because of reference of him received from my wife's coworker. His name is Mr. T Christopher Thomas from Fedfina/Federal Bank home loan sales department. I will highlight issues which I raised with their customer care department with complaint id 2786 and have not received proper justification from them even proof are against them.

1) As per initial application, I was advised by Mr. Thomas during application filling that if my loan is rejected then I will paid back processing fee of INR 5618 paid by me after administrative fees of around INR 1500. I relied on this statement and signed all documents. I will highlight exact words on the form so that you can see loopholes. They are as below:

"The total fees payable by me on if any loan sanctioned Rs. 5618 out of which I am submitting a cheque of Rs......(Left Bank) in favour of The Federal Bank Ltd.......(Left Blank) as initial processing fees. I understood that in event of my loan getting declined the initial processing fee collected will not be refunded. "

I intentionally asked Mr. Thomas that should what should I write in 1st left blank. However, he said he will check his department and fill it & therefore, I left it blank. Now, as per above statement, 1st left blank amount should be INR 1500 which will not be refunded. However, they are not refunding now INR 5618.

2) As per RBI guidelines or NHB guidelines & their website link http://www.fedfina.com/about-us/fair-practices-code.html , I should be provided with rejection reason for my loan processing by email or communication on my address which I didn't receive it until I filled complaint on them.

3) I was unnecessarily convinced to apply for 53 lakhs of loan even though I conveyed Mr. Thomas also in between processing days that it looks to be too much high against my salary and requirements.

4) I had to make lots of calls as follow ups and sent such emails to get back my documents and money which should be done immediately upon rejection of loans.

5) After my call to Mr. Sudhipta Mandal who I suppose is head of sales, had convinced me that as my property was not evaluated, I will be refunded back my money immediately which still has never happened after two months of my application's rejection.

6) My home loan was rejected even with my score of 786 and my wife's score of 817 in CIBIL with reasons cited by Federal bank as below:-

i) No satisfactory savings found in Banking despite good earnings. (Well, after my rejection of Federal Bank's Home loan, I have paid 40% of my home loan's requirement out of which 10% through my savings.)

ii) No notable asset creation even after 5 yrs service. (For your information, out of 5 years of service, I worked 3 years in blue collar job below 2 lakhs/year taxable income with rent of INR 60,000/year in initial 2 years with deposits extra. I really don't know what kind of assets do Federal Bank or Fedfina seek as I have all necessary assets at home except property for which I applied home loan).

iii) FOIR (Fixed Obligation to Income Ratio) exceeds 60% ( It is 67%) even at current income level. (Formula of this ration is FOIR=EMI of all loans including applied home loan/Gross or Net monthly income. I applied for Federal Bank's or Fedfina's home loan of INR 53 lakhs at 10.4% interest which comes to be INR 45934. Dividing this by my income does exceeds their cap of 60% which is actually not my mistake as I never wished to take exactly INR 53 lakhs. Hence, Federal Bank or Fedfina should have reduced to my level and told me that they can grant me loan up to their permissible level of 60% up to INR 42 lakhs. Federal Bank or Fedfina shouldn't have misled me initially with their unrealistic approach.)

iv) OCR (Operating Cost Ratio) sources not satisfactory established. (Formula of OCR is OCR=Operating cost during period(Period is 6 months bank statement)/Average outstanding loan portfolio. Now, in my case I don't have any loan obligation or EMI pending. So Federal Bank have replied me with this answer. Generally this is calculated for an institutional loan and instead home loan are assessed based on IIR or Installment to Income Ratio)

Well, if this is the casual manner in which they deal with home loan processing which puts a bad mark on financial status of an Individual then I would suggest my dear readers to never approach Federal bank for any kind of Federal bank services. If still they are interested in Federal bank's services then God save intelligent minds from getting ruined.

I will be happy if I can get at least my processing fees from Federal Bank which because of my stupidity of putting in this Federal bank's services, I have to fight now to get it back.


Federal Bank-Your perfect Harassing partner.