[Resolved]  Federal Bank Home Loan — Even after prepayment EMI not reduced

Address:

West Delhi, Delhi

Prepayment of rs 1000000 (Rs Ten Lakh) done on Dec 30 2010 (loan amount of Rs 19 lakhs) but EMI not reduced till date 2 June 2011

This is with respect to Federal Bank Home Loan A/c number [protected] vis which I had taken a loan of Rs 1900000. I had never defaulted in EMI's till date since Nov 2008. I made a prepayment of Rs ten lakhs on Dec 30 2011 (cheque clearing date). I had given a written letter at the time of submitting clearly stating my intent of repayment as reduction of EMI which was readily accepted by the Bank Manager ( Ms Susan Cherian). Although, she did not provide any receiving copy for the same even on insisting.

They continued to charge me the full EMI in Jan, Feb, Mar and Apr. All this while I sent innumerable mails with continuous calls but all in vain. Finally one fine day I got a call from an employee from Federal Bank wherein she said the best solution you stop the ECS which accordingly I did by closing my account.

I again spoke to the manager Ms Cherian today (2 June 2011), wherein she states that reducing the EMI is not an option as of now but please go ahead and send another written mail.

My only query is that ain't we as customers allowed to reduce our EMI by Prepayment of principal under the current laws and what legal recourse do I have for all this harassment and overcharging.

Thanks
Seejo
[protected]