Private banks know exactly how to suck the blood of the customers. They have no conscience and do not leave an opportunity to extract unfair money from the consumer.
I had taken a home loan of 27 Lakhs at 10.25% on floating basis from HDFC. First EMI started on 15th May 2008 and the original tenure was 240 months. Since then interest rate was raised twice and the current interest rate being charged is 11.5%. HDFC. The revised amortization schedule shows the current tenure of loan to be 372 months despite of paying 8 EMIs of Rs. 26505. How can they increase the tenure to 11 long years for just an increase of 1.25%?
Secondly, HDFC has announced to cut the home loan rate for existing customers borrowing more than 20 Lakhs by 0.5% w.e.f. 22nd December 2008. However when contacted, they say that the announced dip in interest rate will be applicable only starting Feb. 08. When HDFC did not wait for even a week to apply the raised rates, how can they propose to implement the dip in a rate till next quarter? This is completely unfair. Either they should wait for the next quarter to apply any changes to the interest rate or implement both the increase and dip with immediate effect. Kindly help as with limited income, getting the tenure of the loan increased to 11 more years is very dreadening and suicidal.
Any help will be greatly appreciated.