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[Resolved]  HDFC Bank — High interest rate

I am an executive working with MNC. I had taken a home loan from HDFC in November 2005. The rate of interest applicable then was 7.5 %. I was told that this interest rate is special for my company and less than what other customers and banks were charging. Later on HDFC kept on revising based on RBI rate which is acceptable. But, the revision has now lead to a situation where the ineterst rate, which is 11.75%, from HDFC is 2 - 2.25 % above other banks public sector banks. When I checked with bank they told, they are not directly coming under RBI. Then why they responded to previous hikes from RBI?? Only they do not know, how to reduce. Very bad!!! So guys when ever you take any loans, take from good public sector banks.

I now feel trapped with HDFC as they are charging very high rate as compared to market. There should be some action against them from RBI.
Complaint marked as Resolved Aug 14, 2020
Complaint comments  45 CommentsShareTweet


HDFC — Interest rates

Normally Home Loans with floating rate of interest are to charged with the current rate of interest only. But in case of HDFC, whenever there is any increase in interest rate, it applies to the existing Home Loans as well as to the new disbursements. But in case there is any decrease in interest rates, it applies it to the new Home Loan disbursements only and the existing Home Loans are being charged with increased rates. A clarification is required in this respect. Kindly also let me know the regulatory authority who regulates the Home Loans.

ICICI Home Loan — Charging Higher rate of Interest than present Floating Rate of Interest

The Manager

Dear Sir,
Had taken a housing loan of Rs 1063000 at Floating Rate of Interest from your Bank in 2006 at an interest rate of 9.5 %.( Loan Account Number LBNOD[protected].
On April 10, 2007 the rate was revised and the period readjusted as per existing FRR/PLR.

I fail to understand when your bank is lending from past many months new loans for floating rate at 10.50%-11%. Why, I am being charged 12% rate of interest?

On contacting your customer care helpline number months back was told to me that I can get the same corrected at the branch with refund and adjustment of excess amount. On contacting your branch at Andheri-Mumbai no such help was rendered to me.

Kindly let me know in mail the process of getting this correction done or getting the same corrected from the time the interest has been wrongly charged in excess. Else, I am sincerely considering the option of switching my loan and all transactions to other bank.
Such type of behavior of second biggest Bank in the country with customers like us I s making our belief of trust in you lost.

Hope you all take this mail seriously as this is my last effort to bring the anomaly for correction to your notice.


Ravindra Pratap Gupta
Manager Operations-All India
Pantaloon Retail India Limited
Future Group
Mob: [protected]
ICICI Bank is one of the worst bank to deal with whether its bank accounts, home loan, Credit Cards, or some other products. I really have never heard ICICI bank reducing interest rates from last 4/5 years. RBI should strictly look into this matter and save customers of ICICI bank. I started my home loan in 2003 @8.00 and now ICICI bank is looting me with interest rate @14.00. When you contact them they have standard answers like you have opted for floating rate and PLR is taken into consideration which is as per government and RBI rules. God please help ICICI Customers.
ICICI is the worst to approach for the loan. They do very fast processing of the applications especially loans. One have to understand that the Public Sector banks follows all the Government norms etc, so the processing time might be higher. But it is worth waiting for that rather than screwed up and keep paying for the unethical banks the excess amounts for years.

You guys think RBI don't know this. It will never act. It is always on the Industry side not with common citizens.

The only way we can do is stop all the transactions with ICICI and spread with your friends. If ICICI collapses may be few thousands may loose jobs, but at least lakhs of people will save lots of money and other banks will learn for not following the basic business ethics.

Remember ICICI is the second bank with highest Home loans, so without issuing new home loans, it can still make profits with existing customers for long time. Because the loans are for not less than 10 yrs.
I have take HDFC Loan @ 14.5% interest rate since 1999 and they have charged interest rate @ 15% since then. Now also they are charging me interest rate of 15% where as actual market rate of interest is arount 10%. They are list bothered to RBI rules & Regulations.

my situation resembles to yours. i too am struggling to get out of this. by now i guess your rate of interest is 13.25% but i have been advised that there arent any prepayment/preclosure charges on the loan.

the guys in the regional deptt are not capable or authorised to help the clients by any way or means. i also wrote to the mumbai corp office through the email vide there website. i got a very weird and senseless reply simply stating that my rates have changed as per the RBI guildlines.

i am still working out a way.

my email id is [protected] shall keep you updated and hope that you shall do the same.

Ya its right that comparison to nationalised bank HDFC interest rate is high. HDFC coming under NHB guidelines. Nationalised bank get packages from Government. So they have lower interest rate. Nationalised bank have more defaulters too.


Mr. Vijay, Do you know how much NPAs in private banks and to cover that why the end-up looting the existing ones. Pls go and read their Q'results statement.

Mind you, Govt. banks follow very very strict norms in giving loans and that's where many o[censored]s goes to private banks not because we approach them for bad properties but succumbed pressure from the seller when the market is up for quick disbursal etc.

If anybody undergone such interest rate cheating from non-controllable-private-banks, they will never ever go to them. Another adv. with PSU is, most of them do thorough paper check compare to pvt.

Even when the default occurs, bank won't loose much (unless given to some thugs/politicians on illegal land/properties)

e.g. for a say 23L property, i have already paid 8L in EMI and 4L as down payment. so in effect 12L in 30months AND need to pay still 16.5 to them. But they provide "" as a service e.g. by not sending "Repayment schedule" when there is pre-payment etc. and ask Rs.300 for that!.

guess what even if i default, bank can auction the property (which is 35+L on today market value) and get a hell lot of money.

so pls pls be "sensible" and don't pass arrogance comments across the HDFC screwed user voice/posts.
I agree that ICICI Bank is one of the worst bank to deal with customers of home loan. At First, it lured the customers towards its lower rate of interest but soon after it lost the faith of the customers on the pave of the interest rate, at which the other banks cared the welfare of their customers. RBI-India should look into such matter and compel such banks to follow the rules and regulations strictly to save the customers from the senseless policies of such banks

housing loan rate of interest — double standard which was not know at the time of taking loan

Dear Sir,
I took a loan of 127500/- for 10 years on 02/07 with 9.25% interest floating.LIC has given me only 2 opetions, floating and fix.Hence selected flating so that LIC will reduce as per their plan.
After that every 3 months they have increased the interest up tp 12.5% and now they have reduced to 11.25%.
However for new coustomers they are giving floating interest as 9.50% when I asked for me to give the same interest.but not given.
My question is, how LIC has double standard for floating interst which was not clared to me at the time of taking loan???

There is no value for a regular coustmer who is paying regularly instalments with high interest??
Where we should ask for legal help for injustice ? shall we accept anything that LIC does?
HDFC won't reduce interest rate. Better to go with PSU bank.

I made biggest financial mistake by taking loan from HDFC.
Currently they are offering 9.75% and completely avoiding existing customers. Dear new customers, once you taken the loan, you will be in the same situation like us. Better go with any public sector bank. They service may not be hi-tech. But they won't suck your blood like HDFC and ICICI.
Saw this link - Do not believe this!

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.
Now SBI is offering car loan for 10%. And I'm paying 11.75% for housing loan from HDFC. What a pity!!

Public sector bank car loan interest is much less than HDFC housing loan!!

This is wake up call. It is better to do some papar work and stand in Q in PSU bank rather than repenting afterwords.

HDFC being housing giant should take a lead but they suck.
I am totally agree. I am facing the same problem. It better not to go HDFC/ICICI bank for any kind of loan.
Read this link which might help borrower for the taking the home loan
It's true and as a NRI I had done the same mistake of taking loans from HDFC; as a result end up paying huge interest and despite all RBI regulations they don't seem to budge a bit. It's a shame on the part of Indian to see a fellow indian looting a son of soil at the pretext of bankers. Even when we pay the EMI in time also they dont seem to credit the amount in time and as a result I end of paying penalties many times.

sdfsdf — higher Interest rate being charged

I am being charged @ 11.5% by HDFC while new customers are being offered @ 9.75%. They have changed the meaning of floating rate of ineterst. They increase the rates when RBI increases rates but do not decrease even after so many rate cuts.

I was thinking of balance transfer to SBI. Now HDFC has increased BT fess from 2% to 3%. All the customers at HDFC are unable to transfer thier loans now. We are paying 3 to 6 % higher rate of interest to HDFC than any other bank.

Government should do something in this direction. The Bank must be penalised for this.


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