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First Blue Home Finance Ltd / Deutsche Post Bank Home Finance - Exploitation of customer by charging 14% and 18% floating interest rate on my home loan

 
39 Reviews
User
  homeloan customer on Jun 25, 2011
First Blue Home Finance has communicated to me that it will charge 14% and 18% floating interest rates on my two home loans above Rs. 1 crore which were disbursed in 2006 at a floating rate of 7.15%. In the market, other banks widely disburse unsecured personal loans and car lonas at a rate lower than 14%.

Fisrt Blue Home Finance which is a subsidiary of Dewan Housing Finance company was earlier known as Deutsche Post Bank Home Finance till 2010 and Birla BHW Home Finance till 2007.
These home loans were disbursed in 2006 at rate of 7.15% with a communication from BHW that the interest rates on my floating rate home loan will be kept at an interest rate which will be the lowest interest rate extended to any customer by BHW.

From 2007 till now, this bank has charged floating interest at a rate of 12% and 16% on my home loans and did not reduce it when the interest rates on home loans were lowered by RBI and other banks to around 9%.

There are huge foreclosure charges in case I try to move these home loans to some other bank.

The bank has also informed me that in order to keep the floating interest rates at 12% and 16%, I need to pay a huge sum which makes no sense.

Clearly the bank is trying to exploit me, the customer, by twisting my arm after it has created a situation that I remain with the this bank and it keeps charging me interest rates on my home loan as per the bank's wish and will.

Kindly look ito and help me. If you need any more details on this complaint, please contact me at jagshere@live.com. I can provide my loan statements and communications from the bank to support the facts mentioned in my complaint.
Complaint comments 38 Comments     Updated:
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N
User
Rakesh Garg First Blue Home Finance Ltd / Deutsche Post Bank Home Finance  - India
 

Cheating by BHW (Deutsche Postbank) Home Finance Co. Ltd. - Deutsche Postbank Home Finance Co. Ltd.

I have taken loan from BHW (Deustche Postbank ) Home Finance Co. Ltd. This is a cheat co. & same is required to be dragged to consumer court.

They have increased rate of interest in July & Aug by 1.25% as RBI increased repo rate but kept on holding rates at high level even after huge reduction in repo rate. Rates are now cut by 0.50% on 7th Jan 09 but again existing customers are cheated.

Increase was effective immediately whereas decrease applicable only from 1st March 09. I have complained to NHB & RBI also but they are also not responding. We shall go to court & take stay on payment of EMI, till co. disclose trend of cost of funds.
N
User
Chirajeet Sengupt First Blue Home Finance Ltd / Deutsche Post Bank Home Finance  - India
 

No disbursal - Deutsche Post Home Finance Ltd.

To all prospective home loan buyers:

Please DO NOT apply for a home loan from Deutsche Post. They dont provide any assistance, make you go in circles for documents, keep referring you to and fro from one department to the other, do not entertain your follow-up calls, and in general harass you. I have applied for a loan in Sep, 09, and still havent received disbursal. of course, they have taken full payment of the processing fee right at the beginning.
D Jun 26, 2011 by
User
Anil Chahal  
 
This is fake
D Jun 26, 2011 by
User
Anil Chahal  
 
Current ROI on existing home loan is 12-13%...

Current ROI for Home loan 9.95% ( upto 25 lacs of loan )
N Jun 26, 2011 by
User
Anil Chahal  
 
The bank has also informed me that in order to keep the floating interest rates at 12% and 16%, I need to pay a huge sum which makes no sense - FALSE STATEMENT...this charges are on 1.5% to 2 %...which is equivalent to forclosurer charges... And these day... our foreclosure charges is 0% for new client...
A Aug 19, 2011 by
User
jkg78  
 
This is not false as far as i know...I have a loan too with Deutsche Post Bank Home Finance which took when it was Birla BHW Home Finance. Today I found its moved yet again to First Blue Home Finance. When ever the interest rates go up, they are prompt and move it up for the loan but when it goes down they dont and give me some reason saying its only for new customers. Sad...from the looks of it i will never finish paying the loan if the rate keeps going up like this. RBI can hike the rates all they want but they are not thinking how it impacts middle class people like us. Oh well how r we to ask anyone and who is to help us...I dont think RBI cares anyways.

Regards,
jkg78@hotmail.com
N Aug 19, 2011 by
User
tatheerulherman  
 
I agree loan @ 6% per annum
A Aug 30, 2011 by
User
Kandakumar Doraisamy  
 
Yes i totally agree, even i am cheated by these guys .Some one have to pull this monster out of business, else we indians will be beggars soon .
A Aug 31, 2011 by
User
heera gill  
 
This company is behaving like the olden days SAHUKARS in the villages . If you want to make a pre payment they charge you 3% of the outstanding capital. While the other financial institutions/banks do not levy any such charge on the 25% payment and a few like AXIS Bank have no fore closure / pre payment charge at all . The owners/company management needs to have more dynamic approach towards their clients ; earlier the loans are liquidated the better it is form them .
N Oct 4, 2011 by
User
securitisationlawyer  
 
these private players came from abroad with the help of indian companies looting the general public and befooling us. rbi and govt... helping them in the big loot... from 13.25% in 2007, the interest increases on to 17% in 2011 and rbi is silent??? a common consumer could not pay his loan in entire life... that is the reason why the bank says to keep insured for the value equal to loan amount... in future they must be hiring supari killers and also impose the supari amount in the total outstanding... yes offcourse... this will be happen...
A Oct 13, 2011 by
User
atul.coe  
 
The same case with me. I have taken loan of 23L from BHW which is now First Blue. I had taken loan at 9.75% but now I am paying 13.75%. its too ridiculous. They offer lower ROI to new client and then increase ROI later. And if you try to move to other bank then they will charge you prepayment charges.
A Oct 13, 2011 by
User
RBR  
 
threaten them that you will move the loan to other bank and you have already started discussion, they might offer a interest rate conversion scheme to take some processing charge and reduce interest rates.
A Oct 20, 2011 by
User
hims0410  
 
Even they are charging on issuing a fore closer letter when i asked for fore closer letter.
N Oct 22, 2011 by
User
rajmohan.kumar  
 
Not sure on how these guys got care rating as AA+. This is another example of showing any thing can happen in India if you have power and money. many consumers are raising complaints against such worst banks but there is no action taken, Is there anyone who can address these issues?
N Oct 22, 2011 by
User
rajmohan.kumar  
 
Guys any actions taken on the issues posted in Consumer complaints forum? I dont see anyone bothered about these, neither banks nor consumer forums. come on India... We need response..otherwise we need to start a movement like the one started by india and circulate this on Web...
N Oct 23, 2011 by
User
rajmohan.kumar  
 
Now there is some other institution called CIBIL that is updating the wrong information into costumer accounts and making them as scapegoats for their mistakes. many financial institutions in India especially ICICI, SBI banks are adding credit cards with the outstanding amounts and status "Written-off" even if the customer never had a credit card from the bank and forcing the customers to pay the amount.

There is no action taken on such complaints in any form, surprisingly there is no response from bankers too...

India is great country ... here u have to use the power and money to make more money by cheating the other else u will not survive...

I am one of the stupid IT employee whose paying lacs in taxes every year but getting nothing even the home loan.
N Nov 7, 2011 by
User
shairav2009  
 
I am from Bangalore and have applied for a plot loan of Rs. 7 lacs for ROI 11%. But they are still in the process. It's been almost 3 months. My question to whoever have availed the loan is: will this people sanction the loan amount or not? else how long is it going to take?
Are these First blue homes genuine or not?
Can some one answer my questions as I am desperate to avail loan but the sales rep is postponing the days stating it will be done...the load will be done...Pls pls pls somebody reply to my email-id: shairav2009@hotmail.com as how long the procedure takes and whom shud I contact genuinely to get loan sanctioned as my documents are perfect. Pls sss reply me...:(
A Nov 9, 2011 by
User
tatheerulherman  
 
The interest rate must be redused to 9% p.a w.e.f.1.1.2011 on balance amount
A Nov 13, 2011 by
User
sureshdesigns  
 
I totally agree with this and due to this huge interest and no chance of transferring the loan to other bank I have decided to sell my home..In Nov 2008 they have given me a loan of 16.5Lakhs for the home which has registration value of 15lakhs since the time I have start paying my EMI the principle has reduced only 95thousands.This is very much annoying now have decided not to pay my earnings has interest to this guys...I took the loan for 11.5% interest today its 14% I am paying EMI of Rs.245000 per annum but oly Rs.10000 goes to the principle..They have changed my EMI amount without any prior notice...
A Nov 13, 2011 by
User
sureshdesigns  
 
Its exactly true and most annoying...I have an home loan for 16.5 lacs in nov 2008 for the property which is has registration value of 15Lacs and I pay an EMI of Rs.245000 per year but so far the principle has come down has reduced only Rs.95, 000. Since they have over paid I am not even able to transfer the loan to other banks. They changed the EMI amount without any prior information...They are more pro efficient in looting the customers...Now I have decided to sell the house and close the loan and live interest free...

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    First Blue Home Finance Ltd / Deutsche Post Bank Home Finance - Exploitation of customer by charging 14% and 18% floating interest rate on my home loan