State Bank Of India [SBI] — reduced interest based on mclr not automatically passed on to customers

Address:

THRITHANI HOUSE, VADOOKARA P O, Thrissur, Kerala, 680007

Dear sir,

I would really appreciate the landmark decision which our finance minister has announced on 23.08.2019 in which the finance minister has announced that banks will pass on rbi rate cut benefits to borrowers thru mclr reduction. This will benefit crores of home loan customers across the country. But unfortunately the reality is that the biggest psu bank in the country, state bank of india is not yet implemented this till date though sbi has advertised it about the repo linked lending rate (Rlrl) in many news papers. A copy of the advertisement of sbi is attached herewith. When enquired with sbi, they infomrmed me in their letter dated 24/09/2019 that "the new scheme announced by the finance minister regarding the switch over of loans to interest rate linked to repo rate is not so far implemented in our bank for existing accounts" the copy of the letter received from sbi is attached for reference..

In my case, i have remitted my emi promptly @ rs 6000/- for last 10 years without fail (Since july 2009) for my home loan amount of rs. 675000/- (Loan a/c no.[protected], sanctioned date 10.07.2009, from sbi, cheroor branch, thrissur, kerala) @ 7.5. Though i have remitted rs 725000/- till date the currently outstanding principal is more than the loan amount taken which is rs 789277/- (From cibil report, august 2019). I understand sbi has increased the interest rate in different intervals based on the prevailing mclr rate. When i took the loan in 2009 the interest rate was only 7.5. Ideally whenever any hike is there in the rate, banker has the obligation to intimate the same to customer which is not done in this case. Sbi has never mentioned the interest rates in the annual provision interest certificates, which i used to take yearly. Normally all home loan institutions do so like gic, hdfc etc. (Otherwise, how customer will come to know about the interest rate hike). This is totally unfair. Hence i requested bank to waive off the excess rate charged so far.
In banks reply, from [protected]@sbi.co.in dated 23.01.2018, they had mentioned that as per the resolution, we would like to inform you that disputed interest rate is being examined for redressal, we request you to kindly wait. But bank has not ready to waive off the excess interest rate charged.
If sbi had intimated about the interest rate hike as per mclr rates in different intervals, i would have happy to pay the emi conversion charges (@ 0.25 on remaining balance of loan which is very negligable i. E. Approximately rs 1700/- only) and reduce my emi liability. How a genuine customer should be penalised for banks lapse as bank has never intimated about the interest hike. It is a great a paradox that a bank will charge the excess interest rate on home loans when ever rbi declare the hike in mclr rates. Whereas the banks will not pass on the benefit to the customers when ever the mclr rates are decreased.

I have written about this many mails to sbi following officials
1. Mr ganesh n, chief manager - sbi.[protected]@sbi.co.in
2. Mr gireesan ambadath, assistant general manager - gireesan. [protected]@sbi.co.in
3. Mr v jayakumar, chief manager - rasecc. [protected]@sbi.co.in
4. Gm. [protected]@sbi.co.in
5. Agmcustomer. [protected]@sbi.co.in
6. Pstocgm. [protected]@sbi.co.in
Unfortunately they are not ready to waive off the excess interest charged.

Thanks and regards,

Anand t v
Cell no [protected]