[Resolved] HDFC Bank — High Interest rates | |
HDFC Ltd. is illegaly charging higher home loan interest rate from its old customers whereas they are wooing new customers by offering them home loans at lower interest rates. A recent court ruling has also said that this is an illegal practice. See the link and the news article pasted below. http://timesofindia.indiatimes.com/Chandigarh/Bank-to-pay-Rs-1-lakh-for-overhauling-loan-account/articleshow/47507...⇄ Bank to pay Rs 1 lakh for overhauling loan account 8 Jul 2009, 0134 hrs IST, TNN CHANDIGARH: Deciding a complaint filed by Panchkula resident Birbhan Goyal, the consumer forum held on Tuesday that enhancement in the rate of interest in the case of home loan is illegal and unwarranted. Imposing a penalty of Rs one lakh, which the bank will pay to Goyal, the forum said, ‘The bank is directed to overhaul accounts of all its loanees and bring the rate of interest at par with those at which the loan (home) is advanced to new customers from time to time, so that all its customers, whether old or new, who have opted for adjustable rate of interest pay the same rate of interest during any particular period.’ Stating that the finance company and the bank adopted unfair trade practice, the forum, headed by Jagroop Singh Mahal, held, ‘Whenever enhancement takes place, the rate would not be more than that at which loans are being advanced to new customers, meaning thereby that if after enhancement, loan is advanced to any new customer at a lower rate, the rate of interest of the complainant and all other loanees would also come down to the same level.’ After completing all formalities needed to avail a loan, Goyal entered into an agreement with a home finance company and the bank. A loan of Rs 37 lakh, which was to be paid in 180 instalments in a period of 15 years, was sanctioned and he started paying the instalments from March 2005 onwards on a regular basis. However, a letter took him by surprise in August 2008. The letter allegedly stated that the repayment schedule through EMIs was being revised to increase the repayment time from 180 to 502 months. He immediately approached the bank?s local branch and requested cancellation of the payment rescheduling but to no avail. Denying allegations, ICICI Home Finance Company Ltd and ICICI Bank Limited, in their written reply, pleaded that the complainant had opted for floating rate of interest and due to increase in it, they had increased the tenure of repayment of monthly instalments to reduce the financial burden on Goyal. Arguing before the forum, Goyal’s counsel stated that the finance company and bank adopted unfair trade practice by increasing rate of interest for old customers at a higher rate, whereas the prevailing rate of interest was much lower, which was depicted through their announcements and advertisements in the newspaper to attract new customers. After hearing the pleas, the forum held that the interest rate of any old loanee would be lowered to bring it at par with the interest rate at which the loan is advanced by the bank to its new customers. Was this information helpful? | |
Aug 14, 2020 Complaint marked as Resolved | |
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HDFC Home Loan Complaints - High Interest rates
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ICICI Home Finance Ltd — Tenure & Interests Rate of home loan
I have taken a loan from ICICI Bank Home Finance Ltd in 2005 for an amount of INR 1400000 on Floating Rate of interest at 9.5 % p.a at that point of time for a tenure of 20 Yrs. My EMI at that time was INR 11300/- p.m. I have already completed 4 years of repayment of my loan tenure by today in 2009 without failing a single EMI till date.The first point of concern is that the current rate of Interests as of 8th December 2009 is showing as 11.5 % p.a which is much more that the rate other banks are offering and is declared by the RBI.
The second point of concern is that my tenure has been increased from 20 yrs to 23 yrs even though I have already completed 4 years of repayment from 2005. My initial EMI was 11300/- p.m which was increased to 14825/- p.m for last 2 yrs and is now at 13825/- p.m in todays date. The bank is not reducing the Floating Rate of interest which is now at 11.5 % p.a even though instructed by RBI. Also, they asks to pay lump sum in order to reduce the interests rates as well as EMI. The banks are taking major advantage from this kind of loan and there is no authority to intervene & help common person.
Dear Kamlesh,
Your complaint is highly appreciated. All the customers of ICICI bank should have been made such a complaints to alert the icici bank regarding the customers feeling against the bank. In my case I have personally made a complaint with the customer care verbally and told them that they will be vanished from the market soon if their attitude remains the same.
Your complaint is highly appreciated. All the customers of ICICI bank should have been made such a complaints to alert the icici bank regarding the customers feeling against the bank. In my case I have personally made a complaint with the customer care verbally and told them that they will be vanished from the market soon if their attitude remains the same.
Dear Friends,
Just go to:
CONSUMER DISPUTES REDRESSAL COMMISSIONS
in your respective states and lodge a complaint against HDFC / ICICI and any such bank doing so.
You may even file a police complaint againts bank for cheating. Just consult a lawyer - it will be resolved.
Law is definitely a painful process but Believe me it is always fruitful and in favor of customer.
Just go to:
CONSUMER DISPUTES REDRESSAL COMMISSIONS
in your respective states and lodge a complaint against HDFC / ICICI and any such bank doing so.
You may even file a police complaint againts bank for cheating. Just consult a lawyer - it will be resolved.
Law is definitely a painful process but Believe me it is always fruitful and in favor of customer.
Dear Friend,
I would like to make you alert on few details regarding HDFC and other limited companies.
HDFC LTD is a limited company and is not a banking institute.
It is a self regulated financial organization and is not at all regulated as a refinancing institute or is not a Banking institute. Sales officers makes people fool by stating HDFC Home loan as part of banking division. Even interest rates charged by HDFC is very high which is increased in subsequent years.
As such rates of interests for home loan are definitely regulated by RBI but limited and private companies do not fall under their per-view. These companies fall under company Act and not under Banking Act.
At time of taking loan these companies promises low rates of interest and then increases rates of interest in subsequent years, which increases your burden of repayment in form of slow poison eating your lots of money.
I will share my personal experience:
I have a very bad experience with HDFC, My loan of 11 lac with tenure was only 20 years and was promised with 3% discounted rates for my loan account as the company with which I was working was a corporate client of HDFC, so my loan started at 7.25% rate of interest and a low EMI of 8595/- Rs only.
In later stages HDFC revised rates of interest stating that my loan is on floating rates, where as no discounted rates are applied to my account. More on no reduction in rates are done at all even when rates of interest of other banks and institutes fall down. Even when they offer low interest rates to new customers – on my inquiry they asked for a proceeding fees of almost 12 thousand rupees to revise the rates of interest.
My EMI is also revised to 10, 526/- Rs and the tenure is now increased. Today even after paying EMI for more then 6 years my tenure of repayment is more then 18 years and EMI is increased from 8695/- Rs per month to 10526/- Rs per month. So I will end up paying money to HDFC for more then 24 years.
So I will end up paying four additional years with new EMI to HDFC which will make me a loss of almost 10-12 lac rupees.
HDFC is offering new customer 8.25 rates of interest where as even when I am a old customer with corporate tie up with the company – I am charged almost 11% rates of interest and I am screwed up by paying more EMI.
I have started legal proceedings against HDFC – and warn you all that dont take loan from HDFC other wise your people will also end up in soup and will have to pay huge for small things.
REQUEST YOU ALL TO TAKE LOANS ONLY FROM BANKING INSTITUTES AND NOT FROM ANY LTD COMPANY--
Ask following questions at time of taking loan.
1.Is the company having word “Bank” in its name.
2.If the company is refinancing company - take in written that – rates of interest in the company will be regulated as per RBI norms.
3.Only those people whose files are not getting approved from banks and documents are not clear enough and are in need of loan should opt for such institutes, but mind it these ltd companies slowly increases rates of interest and eats away your lots of money charging high rates of interest.
PLEASE NOTE – HDFC is a limited company and not a BANK. Only banking institutes or company with word “Bank” in its name are regulated by RBI.
Before signing any document of ltd company please read the terms and conditions completely and take a lawyers advise if needed before going ahead to sign the same.
Please disseminate this information to all your friends and relatives so that they are not cheated by any private company in case of loans / home loans.
In public interest by:
Pankaj Kakani
I would like to make you alert on few details regarding HDFC and other limited companies.
HDFC LTD is a limited company and is not a banking institute.
It is a self regulated financial organization and is not at all regulated as a refinancing institute or is not a Banking institute. Sales officers makes people fool by stating HDFC Home loan as part of banking division. Even interest rates charged by HDFC is very high which is increased in subsequent years.
As such rates of interests for home loan are definitely regulated by RBI but limited and private companies do not fall under their per-view. These companies fall under company Act and not under Banking Act.
At time of taking loan these companies promises low rates of interest and then increases rates of interest in subsequent years, which increases your burden of repayment in form of slow poison eating your lots of money.
I will share my personal experience:
I have a very bad experience with HDFC, My loan of 11 lac with tenure was only 20 years and was promised with 3% discounted rates for my loan account as the company with which I was working was a corporate client of HDFC, so my loan started at 7.25% rate of interest and a low EMI of 8595/- Rs only.
In later stages HDFC revised rates of interest stating that my loan is on floating rates, where as no discounted rates are applied to my account. More on no reduction in rates are done at all even when rates of interest of other banks and institutes fall down. Even when they offer low interest rates to new customers – on my inquiry they asked for a proceeding fees of almost 12 thousand rupees to revise the rates of interest.
My EMI is also revised to 10, 526/- Rs and the tenure is now increased. Today even after paying EMI for more then 6 years my tenure of repayment is more then 18 years and EMI is increased from 8695/- Rs per month to 10526/- Rs per month. So I will end up paying money to HDFC for more then 24 years.
So I will end up paying four additional years with new EMI to HDFC which will make me a loss of almost 10-12 lac rupees.
HDFC is offering new customer 8.25 rates of interest where as even when I am a old customer with corporate tie up with the company – I am charged almost 11% rates of interest and I am screwed up by paying more EMI.
I have started legal proceedings against HDFC – and warn you all that dont take loan from HDFC other wise your people will also end up in soup and will have to pay huge for small things.
REQUEST YOU ALL TO TAKE LOANS ONLY FROM BANKING INSTITUTES AND NOT FROM ANY LTD COMPANY--
Ask following questions at time of taking loan.
1.Is the company having word “Bank” in its name.
2.If the company is refinancing company - take in written that – rates of interest in the company will be regulated as per RBI norms.
3.Only those people whose files are not getting approved from banks and documents are not clear enough and are in need of loan should opt for such institutes, but mind it these ltd companies slowly increases rates of interest and eats away your lots of money charging high rates of interest.
PLEASE NOTE – HDFC is a limited company and not a BANK. Only banking institutes or company with word “Bank” in its name are regulated by RBI.
Before signing any document of ltd company please read the terms and conditions completely and take a lawyers advise if needed before going ahead to sign the same.
Please disseminate this information to all your friends and relatives so that they are not cheated by any private company in case of loans / home loans.
In public interest by:
Pankaj Kakani
URJENT PLZ HELP
My father has taken loan of Rs10 lakh from icicibank in 2006 with ROI 9.25% for tenure period of 15yrs & after 2months ROI was raised to 10.25% & now in 2011 when i asked my few information in call centre THAT EXECUTIVE SAID THAT OUT TENURE IS RAISED FROM 180 MONTHS TO 424 MONTHS (15 to approx 35 yrs) & ROI IS 12.50% bec they have not raised our E.M.I thatswhy tenure is been raised but as i have seen one year back amortization statement which i got from bank which describe every month principal, interest & installement amount..i have seen as ROI is increasing they are decreasing the amount of principal & increasing the amount of interest then why they have increased our tenure period from 15yrs to 35yrs...& according to them we have paid only 25000 as a principal amount & more than 5lakh as interest...my father is very depressed, my father was thinking to take more loan for his business but now we are stuck on existing tenure period & ROI...PLZ HELP ...WHAT SHOULD I DO...PLZ HELP..if i switch over to indian bank or sbi bank fixed rate of loan should be preferable or not?
Kamal
kamal.xinte.[protected]@gmail.com
My father has taken loan of Rs10 lakh from icicibank in 2006 with ROI 9.25% for tenure period of 15yrs & after 2months ROI was raised to 10.25% & now in 2011 when i asked my few information in call centre THAT EXECUTIVE SAID THAT OUT TENURE IS RAISED FROM 180 MONTHS TO 424 MONTHS (15 to approx 35 yrs) & ROI IS 12.50% bec they have not raised our E.M.I thatswhy tenure is been raised but as i have seen one year back amortization statement which i got from bank which describe every month principal, interest & installement amount..i have seen as ROI is increasing they are decreasing the amount of principal & increasing the amount of interest then why they have increased our tenure period from 15yrs to 35yrs...& according to them we have paid only 25000 as a principal amount & more than 5lakh as interest...my father is very depressed, my father was thinking to take more loan for his business but now we are stuck on existing tenure period & ROI...PLZ HELP ...WHAT SHOULD I DO...PLZ HELP..if i switch over to indian bank or sbi bank fixed rate of loan should be preferable or not?
Kamal
kamal.xinte.[protected]@gmail.com
Hi Pankaj Kakani,
I also have the same problem.
When i got the loan from HDFC, the interest rate was 11.25. Now it is 13.25. At the same time they offer new loan for 10.25(floating) anf 12(for fixed).
In your previous post you have mentioned that you are going to take some legal action. I would like to know the status of that case because i am also planning to proceed with some legal action.
Thanks
Shagil
I also have the same problem.
When i got the loan from HDFC, the interest rate was 11.25. Now it is 13.25. At the same time they offer new loan for 10.25(floating) anf 12(for fixed).
In your previous post you have mentioned that you are going to take some legal action. I would like to know the status of that case because i am also planning to proceed with some legal action.
Thanks
Shagil
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