IDBI Bank — Home Loan Interest rate

Address:	Mumbai City, Maharashtra
Website:	www.idbi.com

Hello,

Some days ago I just checked my account to find my rate of Interest Rate on home loan and found that the rate of interest rate charged by the Bank is too high as compared to the existing rate of interest. Thus I raised a complaint to change my interest rate. Following the complaint I got reply that I need to submit some form for change of interest rate along with some fees and the process will take around 1 month to complete.

Following are the concerns which is applicable for all the people who takes Home loan from IDBI bank:

1. It was never communicated while taking the loan that the reduction in Interest rate will not be automatic and there needs to be some procedure which needs to be followed and some fees will be charged. While other banks and Financial Institutions does this automatically.

2. Also if there is such a policy to follow the process why the bank does not approaches to customer to state that they need to follow the process. In my example its been more than three months the interest rate has been changed by RBI and also IDBI Bank and I was assuming it got changed on my home loan also but to my surprise I found that it never changed on my Home loan. Whenever there is increase in interest rate the Bank instantly increases the rate but when it decreases we need to follow some process which will take around 1 month of time. This means the bank being bias with their own process in thier own benefits and to earn good profit with losses to customer.This is not acceptable.

3. As the term says Floating Interest rate if I would have not checked the interest rate on my loan then the bank would have charged interest rate on the same interest rate as it was charged before making it as Fixed Interest Rate . That means for the customer it will be Fixed Interest rate till the customer does not approached ban and for the Bant it would be floating if interest rate increases. This is not justified at all.

4. If the RBI keeps on reducing the Interest rate for e.g 5 times in a year, Is it justified that every time the customer needs to apply for change of interest rate . That means a customer should be knowledgable enough to track the interest rates and accordingly take action every time and wait for one month for the changes.

5. In this modern day age where everything is moving so fast and everything becoming digital why the bank is still on paper based application for change of interest rate and also wait for a month .

This complaint is not for benefit of my own but it would be applied to all customer whohaver had taken loan from IDBI Bank that the bank should focus on how the customers can be benefited from reduction in interest rate and not on how to take unnecessary benefit for the same by delaying the change in interest rate and charging a fees (Some nominal fees also). Hope to see some action after this.