I have taken floating rate home loan from HDFC on 2004 and rate of interest was 8% that time. At the same time SBI was too giving loan in 8%. When RBI hike reserve repo, this bank is the first bank to increate interest rate for existing customer but never reduce interest rate when RBI do so. This is very unfair and black mailing to existing customer. SBI Home loan interest rate is now 9.5% where as HDFC is charging 12.75% to me. I will suggest everybody to never go for this private bank and although processing will be a little bit slow in public sector bank like SBI or Indian Bank, but you will not regret like me in future.
I want to ask you one thing that if you know that SBI is good bank then why you choosed HDFC for finance.
Now i will clear you one thing that SBI is a nationalised bank and all nationalised bank get package from government and they come under RBI guidelines. But private banks are coming under NHB. So you will must get lower interest rate comparsion to Private bank. But in nationalised bank there are certain boundries. For example they cant finance if you working outside or choose to purchase flat or construction house out from your local city.And their loan process is very slow. They also follow the same rules which private bank has.Every quaterly HDFC revised his interest rate. So before finance you read and clear all the things and go for Loan. After taking the loan dont blame the Bank. Mr.Nayak you are a Loanee. If you have taken money from somebody it is your duty to ask that what charges they are putting on you.So i will suggest you close your loan as soon as possible. Kisi se udhar lena aajkal bada mahanga he.
I request you to be "sensitive" to the HDFC kinda private bank home loan victims. Now a days most of the genuine (first time home for living, not for speculative investment etc purpose) home loan buyers now understanding their "mistakes by gone for private banks" lately.
I am too one of them. I too agree your point, but it shouldn't make the private banks to RIP the customer the way they want despite the so called "floating rate". it must be renamed to "increase rate, if RBI RPP/CRR increases for existing customer" (never mind its lengthy name).
You are 100% right. Dear new customers, after three month you will become existing customer and will end up in paying high interest rate. Please avoid banks like HDFC and ICICI. They will take all your hard earned money.
All of you are comparing old customers of PVT BANKS with the New Clients of Nationalised BAnks. Please understand the same from a SBI customer who had taken a loan earlier and now whats his presemnt rate. please understand bot pvt sector and nationalised banks are into Business and both will not give anything free.
Anyway SBI is far better than HDFC. I'm a victim of HDFC home loan. I've taken loan for 7.5% in 2005. My friends took from SBI same time. Now they are paying 10.25% and I'm paying 11.75%. Difference of 1.5%. So dear customer you can judge, who is better. My decision to take homeloan was biggest financial mistake.
Even after complaining lot of times, HDFC is still charging me 11.75%. They are blood suckers. Don't approach them for any loans. Their MD makes a statement that cost of funds have come down for giving loans at 9.75 for new customers.
Somehow, the cost of funds don't come down for existing customers.
Customer complaints have forced Mr Parekh to make such statements. But he is not ready to bring down rates for old customers.
All the " Floating Rate" Loans offered by Private Instituions like ICICI and HDFC is a big gimmick. The only thing floating about a HDFC Loan is that you are always high and loan rates come down only for new customers.
Now they do not want to let go of profitable customer ( read as FOOLs ) like me because I am at 12.25 % and to prevent me from refinancing my loan to a PSU Bank they have increased the prepayment charges to 3 %. Looks like we have signed contracts that is one sided and we need to dance to the tune of HDFC.
Should'nt the cost of funds be the same for new and old customers. They define somethign called spread and keep giving better rates to new customers and for existing customers who are hooked to HDFC ( with your property mortgaged to them ) there is hardly any reduction ( they reduce by 25 bps when industry competitors have cut by 100 bps).
Please for heaven sake go to a PSU Bank even if the process is cumbersome. Don't get robbed in broad daylight under the very nose of regulators. Am sure regulators will not take actions against heavyweights like HDFC and ICICI because Mr. Deepak Parkeh and Mr. Kamath are considered doyens in the industry and sit on many of these advisory commitee's ...
If Mr. parekh feels there is something fishy in the SBI loan rates, why is his org increasing loan repayment rates without even bothering to inform customers.. Let the customer decide what's best for him/her
* high interest rates,
* highest transfer fees,
* one of the last bank to reduce interest rates by a very small %.
* one of the first bank to increase the interest rates by a good %.
* Very Very poor customer service, people cannot speak properly when they pick up a phone.
* provides inadequate account information to customers
Really Pitty... situation for existing customers of private sector banks.
Is there no standing in court against this disparity between old and new customers, being made by pvt banks like HDFC. They are changing pre-processing fee too if existing customers want to shift to PSU banks. Aren't they "WHITE COLLAR CHEATS" ? Does RBI not know about all this, why they can't intervene!
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.