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Standard Chartered Bank |
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23 Reviews
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Vikas Ranjan 
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Home Loans
I am one of numerous customers who have taken a home loan from Standard Chartered Bank at a "Floating interest rate" more than 3 years back. Needless to say that due a declining economy and global slowdown, the interest rate has increased considerably in the past 2 years. I started at almost 10% but as of now I am sitting at 13.5+ %.
Whenever there has been an increase in rate from RBI in the past, Stan. Chart. has been prompt to immediately increase my floating rate immediately, sometimes within a span of 15 days from the time RBI increased it. Also, for the first time that RBI increased the rate, stan chart was considerate enough to increase the tenure of the loan as against increasing the monthly amount. But that was just the first time, after that they have been continuously increasing my monthly amount based on the change in interest rate. SO much so that I am now paying almost 35% more amount in my monthly installment than I was paying 3 years back.
I was still ok with all this since it was the market trend. But the shocking part is that they have not reduced a interest rate at all since the RBI reduced it's rate. In the past couple of months, RBI has reduced it's rate more than 3 times but Stan. Chart has not made any changes to their floating interest rates. They continue to charge the same high interest rate.
This is cheating. When I sign up for a floating interest rate, I sign up to move my interest rate up when market is going up and getting it down when the market trends that way. With Stan Chart it's a one way street, they only increase but never decrease. While all the other banks including ICICI and HDFC have reduced their floating rate in the past few month, Stan CHart continues to be elusive. This is completely against the rules of Floating Interest rate that I signed up for.
I am almost on the verge of filing a case in consumer court for the malpractice of Stan chart.
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 22 Comments |
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Hi Vikas,
Even i want to take this bank to the consumer court, Could you help me with as how can i approach the consumer court?
Thanks
Prasanna
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Even I want to lodge a complaint against Standard Chartered Bank. These folks are taking the Indian public for granted. They are ruthless in their approach and want to cheat.
I have seen that they do not reduce the rate at all. I'm caught up in the Home Saver scheme of Standard Chartered and not able to make ends meet.
Let us lodge this through RBI Ombudsman as well.
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Very true, I am also a customer of std chart. and had experienced the same, its a big fraud bank.
Lets file a case collectively.
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Exactly in the same boat as Vikas. When they were increasing the rate I got a letter every couple of months informing me of the increase. But nothing much happens when the RBI reduces rates - still paying 12.5%.
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Hi Vikas
I am fully in agreement with you. Join the gang of victims. I got the loan in the year 2004 at a special interest rate of 6.75% - they claimed that the rate is special for employees working in Reliance (my then employer). But as rightly pointed out by you, we are looking like fools when other banks including nationalised banks are charging around 8.50% to 9%. Its a whopping 4% differential which translates to a huge amount for us.
I am in the process of shifting my loan to some other nationalised bank where the interest is nominal. Unfortunately, SCB charges 3% as penalty towards foreclosure if the source is from another bank.
I understand that SBI had charged penalty to a consumer and the consumer had filed a case in consumer forum which the bank lost. The bank appealed in the Bombay High Court and lost again. I believe, the bank has filed an appeal in the Supreme Court and the case is yet to be heard. Does anybody know the status of this case?
Please do revert. We can form a group and can file a consumer forum case against SCB on this penalty issue and high interest issue.
Regards
S.Kannan
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I too agree on this regard. IWe all have been cheated by SCB. Sad part is the agents who work for SCB knows everything but still collectively cheat for their commission.
I would like to know whether any of you have got any feedback and further progress on your proceedings?
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I am in the process of taking a stan c home saver loan and am glad i saw your posts..my queries are two..do they commit a spread from mvrr for the tenure of the loan? Secondly do they move mvrr down in line with market?
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Well my association with Standard chartered has been on many fronts and they have been very prompt to fail me on all. I live outside India. Everytime I visit India I call them 1 month before to send me a letter stating what would be final amount of home loan payment, so that I can pay off at one go as they are charging me exorbitant rates. They have not been able to do it for 5 times during last 1 year.
On my SCB credit card, I used to make online payments and never missed a payment in life. But when I was about to make last payment, they cancelled the facility. As I was abroad, I spent 3 times the payment in calling them, but they did not resolve the issue. Finally I had to pay 5 times more amount than what I owed during my next visit to India.
On bank account again they keep on charging fines for nothing. This time I have fortunately got 1 month visit to India and I would be able to end my relationship with the SCB for ever. Most of my friends had similar experience with them and we call it a standard cheating bank.
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I agree with you all SCB has been unreasonable with me as well. I took Floating loan 4 years at an interest rate of 7.75% and as you all mentioned they were pretty prompt in revising rate upward in line with RBI. And when Interest has started going down they do at their own will. I used to chase them and several times also asked them that I wish to transfer/close the loan but their pre payment charges are also high somewhere around 2.75% of Loan amount if you are winding loan before completing 5 years. In last 2 qtrs they have reduced rate of interest by 0.75% to 1% it's very negelible. I am still paying 11:25% which is quite high compare to other PSU banks are charging. I would advice never ever go to SCB it's better to be with any of our PSU bank.
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Please note that the bank is not happy fleecing you with the higest interest rates !
Now that interest rates have been forced down, SCB has to continue fleecing trapped customers.
Now if you plan to close your home saver, be ready to pay 2.5% for the principal outstanding, which is big money... as i'm sure no one "repays" a home saver account!!
They changed this before their swindling scheme could complete 5 years as they were loosing customers who were closing their loans for free after 5 years.
So they penalise everyone who agreed to wait patiently for 5 years.
It's like the Govt. saying wait for 15 years to get your PPF and when it is 14.5 years change the rules and tax this amount.
Please do'nt bank with SCB!!! Ever!!! I wo'nt for sure!!!
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one can complain to Banking Ombudsman. Check below :
What are the grounds of complaints?
The Banking Ombudsman can receive and consider any complaint relating to the following deficiency in banking services (including internet banking):
A customer can also lodge a complaint on the following grounds of deficiency in service with respect to loans and advances
non-observance of Reserve Bank Directives on interest rates;
delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of loan applications;
non-acceptance of application for loans without furnishing valid reasons to the applicant; and
non-adherence to the provisions of the fair practices code for lenders as adopted by the bank or Code of Bank’s Commitment to Customers, as the case may be;
non-observance of any other direction or instruction of the Reserve Bank as may be specified by the Reserve Bank for this purpose from time to time.
The Banking Ombudsman may also deal with such other matter as may be specified by the Reserve Bank from time to time
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I am Home loan consumer of SCB since past 5 years, and in floating rate of intrest. I agree with the comments that there is an increase promptly and decrease is as per the cycle.
This is just one voilation. There are gross voilation in various other areas, I strongly feel that people trobuled by SCB should form a forum and ask RBI to intervene.
For other patrons please have an eye on following:
1. If you are home loan customer check your account statement regularly.
2. SCB does not provide account statement unless asked for(atlease home loan which I am a subscriber of). The reason for not giveing the statement of accounts is obvious.
3. GOD forbid but is you have defaulted on a EMI, make sure that they write it on the collection recipet, do not make the payment of EMI and charges on same recipeit.Since you dont get the statement regularly after few years will wonder where the money went.
4. Always communicate with them via e-mail or snail mail, only with head customer service, rest all the e-mail id's donot have a answer or will give you a call to settle the matter, with no solution offered.
Its time that we unite and raise our voice against this aghast new world money lenders in form of Banks like SCB.
Dear friends ask a question to yourself : that Marathon does not improve image, but increase spending, where is the money coming from? Should RBI not take this a clue and investigate its compliance?
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I am one of numerous customers who have taken a home loan from Standard Chartered Bank at a "Floating interest rate" more than 3 years back. My account is Home Saver account. I opted for loan at 7.75%. Only last year end i got mail that interest % is raised to 10%. Day before, i get mail from SCB that from March 2011, it is going to be 11.75%. This is atrocious and exploitation.
Upon this, the worst part is that, monthly EMI is calculated as 9, 380/-. Wondering, how they arrived at this figure. When it was 10%, my EMI was 5800/-. Letter was signed by the VicePresident of Loan dept.
Sincere, suggestion, do not bank with SCB and ban all the SCB products. Blood Suckers...
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Please help me they are charging a interest of 14% on my home loan, other banks are charging 9.5 %. Please save me, they are kill common man.
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I have been victim of SCB as well. These folks have been very prompt in increasing the variable rate and they increase at such a rate that it is unbelievable. A comparable study will tell us that other banks do increase the rate but not at the % point that SCB does. In my case, in a little over 1 year, they have increased it by 3.25% (12.47% at the moment) which is way high than anyone would expect!! Be aware before doing business with SCB, it is not worth. The product home saver looks very tempting but there in my opinion, nationalized banks are more transparent. I am trying to see if I can get it changed on the basis of base rate.
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I have been victimised by SCB as well. I opted for home saver account in Jul 2011 and got interest rate of 0.76% (margin) over base rate. Base Rate at that time was 7.50%. Current base rate is 8.50% and till last month my rate of interest was 9.26%.
Got a letter from SCB statiing that my margin has been changed from 0.76% to 1.81% ????. No reason for change in margin is given. I was under the impression that my rate of interest is subject only to Base Rate and margin would remain the same.
Is there anyone who got the same letter from SCB. This is atrocious and they are just ripping as off.
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Writing to the Banking Ombudsman did wonders. The matter related to preclosure penalty. When I signed up for the loan the deal was 5 years down the line the penalty would be 0%. Hence I signed up for the HomeSaver paying a premium on the rate of interest. Subsequently in 2009 they changed it and said the penalty would be charged irrespective of the loan type.
After having discussed with them and realizing that they would not waive off the penalty, I wrote to the Banking Ombudsman which was acted promptly upon and in a weeks time got a email from SCB that waived of the penalty.'
Hope this helps. Online Complaint (https://secweb.rbi.org.in/BO/compltindex.htm)
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@vipchau: my home saver account's margin was also increased recently. I was shocked as I was under the impression that the base rate will be the only variable factor.
The base rate scheme doesn't seem to bring much transparency. These banks can still give a lower margin rate for new customers and fleece the existing customers by increasing their margin rates. This really sucks.
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@consumer_g,
Is there anything we can do about this. Base Rate was supposed to bring in more transparecny but seems otherwise. i tried sepaking with product team but seems no way out
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Even I agree. I have taken home saver account and they are not decreasing the interest rate at all. Its too high as compared to any other banks.
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Prasanna
Sarabjit Singh
