[Resolved] Reliance Consumer Finance — No taxation in PrePayment penalty of Home Loan - Floating Rates | |||
I brought a home loan from Reliance Consumer Finance about 4 years back. The interest rates of this loan was fixed for the first 3 years, i.e., at 9.95%, but the loan was shifted to floating rate as per the terms in the agreement and since then the ROI has increased to cross 12% without much of rational behind it. I started feeling the pinch of the increased EMI and/or increased tenure and decided to move to other banks/NHFs, and applied for foreclosure in October 2011. Fortunately to during this time both NHB and RBI instructed the HFCs and Banks to relax prepayment charges on home loan customers with floating rate of interest irrespective of the payment source with immediate effect. It has been more than a week now that this mandate was declared by the banking regulators; however, Reliance has not yet adhered to the same. In my numerous emails to them they have maintained that they will not grant any relaxation and would charge me with 2% penalty for this foreclosure. Relaince is not coming out and explaining as to why would they not adopt to the RBI/NHB guidelines. Was this information helpful? | |||
Aug 13, 2020 Complaint marked as Resolved | |||
 4 Comments | |||
Comments
I've taken a Home loan for purchasing a DDA Flat from M/s.Reliance Home Finance Ltd. vide their Loan A/c. No. RHHLDEL[protected] under Floating Intt.rate @8.5% on 16/3/10 - as written on their "Welcome Lt. dt. 16/3/2010" but within two years they increase my Loan Intt. rate to 13.25% which is un-ethical. And specially as Govt., have given a respite for pre-payment charges as NIL, I've approach Andhra Bank for a take-over of my balance loan and they agreed upon.
But to my utter surprise, when I approach Reliance Home Fin. for a foreclosure of my loan they charged me 2.25% as pre-payment charges, showing an excuse that my Loan was semi-floating. They were using the term Floating in different time in different manners.
At the beginning they used my Loan status as "FLOATING" now giving another name as "SEMI-FLOATING" All these type of companies are making money by various tractice.
On Saturday 2nd June'12 when I approach them with Andhra Bank Pay-Order for foreclosure of my Home Loan they took 2-days Bank Pay Order clearance charges. On the Foreclosure statement nothing was written as towards DD clearance charges.
All we know Bank Draft / Pay Order is suppose to be a valid mode of payment, which every organisation accepts as good as "Cash", nobody can think of any charges for clearance of a Bank Draft
As such, I would request your honour to look into the whole episode of Reliance Home Finance Ltd., in my case and direct the company to reverse my Loan pre-payment charges Rs.25, 240-71 & Bank Pay Order Clearance charges Rs.779-00.
Regards,
Gouranga Ganguli
Mob.[protected]
But to my utter surprise, when I approach Reliance Home Fin. for a foreclosure of my loan they charged me 2.25% as pre-payment charges, showing an excuse that my Loan was semi-floating. They were using the term Floating in different time in different manners.
At the beginning they used my Loan status as "FLOATING" now giving another name as "SEMI-FLOATING" All these type of companies are making money by various tractice.
On Saturday 2nd June'12 when I approach them with Andhra Bank Pay-Order for foreclosure of my Home Loan they took 2-days Bank Pay Order clearance charges. On the Foreclosure statement nothing was written as towards DD clearance charges.
All we know Bank Draft / Pay Order is suppose to be a valid mode of payment, which every organisation accepts as good as "Cash", nobody can think of any charges for clearance of a Bank Draft
As such, I would request your honour to look into the whole episode of Reliance Home Finance Ltd., in my case and direct the company to reverse my Loan pre-payment charges Rs.25, 240-71 & Bank Pay Order Clearance charges Rs.779-00.
Regards,
Gouranga Ganguli
Mob.[protected]
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Home Loan Prepayment — Home Loan Prepayment Penalty
I learn that Home Loan can be prepaid with own sources without any penalty as per recent judgement passed on by Consumer Court somewhere in the country. Can anyone give me more details on this and the link or document of the judgement.