Saurabh Kumar Arya
C 1101, Tharwani Heritage
Sector -7, Plot No. 24
Kharghar, Navi Mumbai
LIC OF INDIA
Sub: Correction in home interest rate
Ref: a) My home loan A/C no. 430701787 Dated 10.07.2007
Application No. : 615584
This has reference to above.
A loan of Rs. 25.0 Lakhs was sanctioned to me as per my application No. 615584 (loan A/C no. 430701787) at a floating rate of interest ( LHPLR - 275 bps).At the time of sanction LHPLR was 13.75% accordingly loan was sanctioned to me at interest rate of 11%.
Now after decrease in LHPLR ( 13.25% ) by LICHFL my home interest rate has increased up to ( 11.25% ) which should have been 10.5% ( LHPLR - 275 bps).This has really baffled me as how the calculations are being made in LICHFL.
A letter was issued to me by LICHFL, Jeevan Prakash, Fort, Mumbai stating that my home interest rate has increased up to 11.25%
This discrepancy was brought to the notice by me at LICHFL office, Vashi on 25/02/2008. On further inquiry, LICHFL executive at Vashi office clarified that by mistake, floating rate of interest has been entered as LHPLR MINUS 200 bps instead of LHPLR MINUS 275 bps and same shall be corrected at the earliest but nothing was done.
Again, an E-mail was sent on 19/04/2008 requesting amendment of the same. Reminders (E-mail) were sent on 04/05/2008 & 27/05/2008 as well. This issue was discussed with the concerned executive at Vashi office so many times yet nothing has been done so far except LIP SYMPATHY. My all the efforts in making the correction in interest rate by LICHFL executive remained futile during last four months.
This has caused mental agony, harassment and doubt about commitment of LICHFL towards fair practices code.
It is requested to take urgent necessary action so that interest rate is corrected as LHPLR MINUS 275 bps and this pending issue is resolved at the earliest.
My name is labhesh vaidya, i read your letter sent to the LIC officer regarding the miscalculation of Loan Rate of intreast regarding the LHPLR by Mr. Saurabh Kumar Arya. Even i was charged in a wrong manner as, as the rate of intreast on my sanction letter was 10%. But when i got my first EMI deducted it was found that they have charged me at the rate of 11.00%.
Again i got a letter from LICHFCL stating that the LHPLR rates have slashed down by 75 bps in JAN 2009 and my rate of intreast will be "11.25%" which has increased instead of decreasing. This is sheer fooling of the customers, I will surely complaint about this to the senior most officer of the LIC. Do mail me if you have any better way of fighting against this.
I also fully agree with the observations made by Mr.Labhesh Vaidya. In my case, the LHPLR at the time of sanction was 12.50% (08.03.2007) and the rate of interest was specified at LHPLR minus 250bps, and special concessional rate of interest was specified as 9.25%. Now i have been receving a series of letters from LICHFL informing increase / decrease in floating rate of interest but it is calculated 250 bps less than the LHPLR. LICHFL has conveniently forgetton the concession of 75 basis points which also needs to be considered. If not what is meant by the concession in the rate of interest as per the sanction order. Further some of the letter from LICHFL specify only the restated EMI but not the rate of interest adopted and the basis of such new EMI calculation.
Lastly, LICHFL has issued a press release dated 3rd February 2009 reducing the floating rate of interest and when i enquired to the Regional Office at Saidapet, about the effect of such press release on the rate of interest charged on my loan, the official says that the new rate is applicable for new loans only. No where in the press release it is mentioned that it is for new loans only.
It is highly regrettable for an institution like LICHFL to indulge in such objectionable and questionable approaches in the matter of charging interest and sending communication to its customers and public at large.
Please let me know if you agree with my point of view and we will take up this matter further.
It seems everyone is facing the same sort of problem about interest rates. After carefully studying my sanction letter and talking in length to LICHFL agent last month, I come to the following conclusions. Any mention of "Special Concessional Rates (mine was 10.5 %)" or "recent announcements of new rates of 9.25 % and then of 8.75 % for new loan applicants " in the sanction letter is only applicable for 3 months. Thereafter, applicable rate would be "LHPLR - 250 bps". This is what written in my SANCTION LETTER ( dated September 2008). And according to my sanction letter, the current LHPLR was 14.5 %. After the recent announcement of reducing LHPLR by 0.75 % for existing customer with effect from Jan 1, 2009, the current LHPLR now stands out at 13.75 % and hence my floating loan rate is 11.25 % ( not 10.5 percent as promised initially ). As of now, I am paying Pre-EMI interest on 11.25 % after paying it on 10.5 % for three months.
Infact, the LICHFL agent happily told me that after three months, everyone else comes to the same floating interest rate irrespective of what they are being offered earlier ( 9.25 or 8.75 or something else). Yes, I agree this is totally unethical from agent side, who would never told you first when u come for a loan. Instead he will boast of about LICHFL interest rates is much lower than other private banks specially ICICI bank. This leaves you in a bad taste and you feel cheated.
The customer service is pathetic. They would never tell you about any updates or announcements. I do not think that anything can be done against them. The only thing we can do is to discourage others from taking loan from LICHFL or be clear about every point while taking loan from them. The are other corrupt practices too in which their agents are involved, which I would discuss it later.
In my case the agent mumbles and gives repetetive useless answers; The agent has clearly cheated; In fact i never approached any agent. I directly called a area manager for loan assistance. The area manager then asked some to contact me, which i thought, should be a LICHFL employee. But sadly, i found myself discussing with an agent later. Why LICHFL / area managers wants things to be done through the agents, , even when directly approached by the customer, is one question which the management of LICHFL should inquire.
It is very true that the LIC HFL has many flaws in their working. We have also faced a problem of Special concession. But it was sorted out after a long fight with the LIC HFL people. Now, there is a new issue of BPLR. It is clearly mentioned in the terms and conditons that any change in the BPLR, should be informed to the customers, but they failed to do so. Despite of asking them again and again, they fail to do so. Rather, one of their senior officer in his mail, told me that BPLR varies from account to account. Now, I don't understand that how can BPLR vary from individual to individual. Yes, the Rate of Interest may vary, but I don't think that BPLR can also vary.
Now, till the date we have not being informed about the approved source of LICHFL for knwoing the BPLR.
Sometimes we really feel pity on our selves that what made us to approach LIC HFL for the Loan.
I perfectly agree with the agony faced by innocent customers. We go to LICHFL considering it being a govt organisation views, the home loan dealings will be transparent. But it is dominated by touts called the agents. The lichfl officials will like to deal us through agents for obvious reasons and to frustrate the customers further, the Area Managers will be unapproachable. So deal with agents at Ur own risk.
I had taken loan from LIC HFL and submitted 3 policies. The loan was paid back fully and policies re-assigned, but while the policy matured it seems LIC was not intimated by LIC HFL about the re-assignment. I have to run around to get some forms signed from LIC HFL and put in efforts for the inefficiencies of HFL. I don't know if these guys are accountable for their mistakes.
I m also a five year old sufferer of LIC HFL. When LIC HFL has declared reduction in interest rates in press conference then they have not specified for new/old loans. When they can increase rates for old and new both then they should decrease in the same manner for old and new both. This revision should be adjusted on old loans also, for all earlier revisions which was made only on new loans.
RBI and other concerned Govt Agencies should act strictly on LICHFL and compell them to adjust the same revision rates on both old and new loans.
I totally agree with all you gentlemen here. I too trusted LIC and to some extent was lured into their lowest initial quote. Please note, people reading this, LICHFL may offer you the best rate or eligibility, but I can only say after a couple of years of dealing with these fraudsters, that these people cannot be trusted with your hard earned money.
Please reconsider your decision before going ahead with any of their useless Agents' offers.
I hope the RBI's Banking Ombuds-person reads this and takes strict action on these people, spoiling years of brand equity that LIC (the Life Insurance Company) has so painstakingly built. Amen.
I have the same issue with LIC HFL, I am an victim as well. There are a lot of ways to fight this. Listed below are just some of them :
Post this on RBI website
Contact Banking Ombudsmen Team
File a case at the Consumer Forum (after you have a written justification from the branch)
Report to ASCI - Advertising Standards Regulations and stop all the ads by LIC HFL on the media.
The final option would be to stay with me and raise a voice, i am going ahead will all the possible options if i issue is not addressed in 2 days from today.
email@example.com ; firstname.lastname@example.org
Guys we now need to teach them the banking ethics and Customer Service. so please stay in touch and lets fight this together.
Dear all, LICHFL is behaving lide private brokerage agency. It is well known for cheating the people. Please never fall in the trap of agents. Public sector company is behaving like this, thinks about private banks. Government of India or NHB should have control on this. we will fight together against this. email@example.com
I took Housing loan from you, and my EMI is deducting through my salary, now, the problem is floating rate, i was surprised by the rate of interest when the rate comes EMI period also should come down, but in my case there was increase in EMI.But, it should be deducted through if you deduct it will be good.
U can cry till you are alive,
But LIC HFL will never respond...
I got a loan sanctioned but before I got amount these idiots has stopped their loan because they found discrepancy in My document...
Good, but these fools has found that only after their legal (advocate ) said document is ok.
These f*** has charged me 1%+1 EMI.
They said they will reimburse it...
ya for past three years they are still reimbursing...
I gave letter each time (Totally six times) two time they even doesn't got the letter because heir manager went to pregnancy...Wow what a responsible work culture.
These stupids are in field because they are PSU, otherwise public has F***** this bloody crap unit before years.
Sub: Poor Response ( No response ) CP Branch Delhi
Ref: a) My home loan A/C no. 3101000114.
It is very true that the LIC HFL is a very Pront company..But I facing lot of comunication Problem with Delhi CP branch..No Phone pickup, no mail reply..My request Pl arrange the Proprer traing to CP brach.
Initially I was told that the interset rate will be 10.4% floating, but when I got my sanction letter, it was mentioned that the above mentioned rate is just for 3 months or next revision, & after that it will be LHPLR-3.4% c(urrent LHPLR being 14.4%). This clearly means that they are fooling us by stating interest rate of 10.4%, as the same is applicable only for 3 months. Also being a Navratna PSU employee, I was told that I will be given a discount of 25bps in LHPLR (i.e. LHPLR in my case would be 11.15%), but the same is not mentioned in my sanction letter.
The same story with me also, Initially I was told that the interest rate will be 10.4% floating, even i asked again and again for any other hidden charges or policies they didn't clarify anything. but when I got my sanction letter, it was mentioned that the above mentioned rate is just for 6 months or next revision, & after that it will be LHPLR-2.75% (current LHPLR being 14.4%).
When i think about the changing the bank they are saying that they will charge 2% on principle amount even after the guideline issue by the RBI that they can not charge prepayment or pre-closer fees.Please suggest the appropriate action.
I have Submitted the documnets for loan along with cheque of 5600 rs and was told after consulting the sanction process then only we will deduct the amount, but after 2 months of application my money was deducted and have not received the Sanction letter at present I am not able to take any kind of loan let me know how to get my amount back ?