Show menu
FAQ FAQ Categories Categories Sign in Sign in

[Resolved]  HDFC Bank — Prepayment charges for transfer of loan

I had availed housing loan from HDFC at the rate of 10.25%. Without informing me, they have increased to 11.50% and then brought down to 11% (the present rate).

As SBI is offering at 8% which is applicable both to the new loans and takeover loans, I had approached HDFC for the same.

To my shock, they have informed that penalty charges at the rate of 3% (along with Service Tax and educational cess on ST) will have to be paid by me if I am transferring the loan to another bank.

Earlier the rate was 2% and with the fear that lot of customers will be moving to Public Sector Banks, HDFC had unilaterelly increased it.

With the Supreme Court ruling against such pre-payment penalty, what is the recourse available to me?
Was this information helpful?
Yes (0)
Aug 14, 2020
Complaint marked as Resolved 
Complaint comments  50 CommentsShareTweet


Same is the case here. I have a housing loan from HDFC with current ROI 11 % ...& will have to shell around 3.25 % of outstanding as loan closing /prepayment charges + service etc... .. and after inquiry was told that charges have been increased from Feb 2009... Prior it was 2 %...

If HDFC wants to be the game .. they should drop interest rates . This penalty increase gimmick is only going worsen there reputation...

I too feel the same heat as you all people are feeling .
Today when i contacted the HDFC customer care for pre-clousre charges they told me that it has been increased to 3% from 2% since 16th Feb, 2009 .
How banks can do such a unethical things with their customers .
Either they should come into the competetion with all the bansk so that the customers should not think to migrate their loan or their must no be any charge for migration of loan to any other bank.
3% is charged me too by HDFC bank.
I don't know whether some action will take, but for my satisfaction I lodged a complaint at RBI website
This is Blackmail by HDFC, they are holding their customers to ransom. They are not rationalising thier interest rates with the market and to add insult to injury they now have increased the prepayment charges to 3 % from 2 %.

I wish the RBI or Govt. steps in on behalf of customers and does something to protect thier interests.

Any new customers please shy away from HDFC. I have been a HDFC customer for nearly 10 years but all along I have been paying high interest. They upped thier interest rates so quickly when rates went up but they have delayed the reduction and that too only moderate cuts. I agree that the initial paper work is easier than PSUs / competiion but this convenience it is definitely not worth the price you oay later. Pls shy away from HDFC.
This is really frustuating...same thing has happened with me even...I was shocked when got to know that prepayment charges are increased to 3%..This is again CUSTOMER DISSATISFACTION...HDFC should reduce the interest rates for existing customers also as existing customers are the current profit makers for them.
How can HDFC bank can change to 3% for existing customers? When we sign agreement, it was 2% and HDFC should not increase for Existing customer.
Anyone please suggest if we can take legal action against HDFC. HDFC has increased the Loan closure amount from 2% to 3% without intimating the customers in advance.
Although it is their policy, they must intimate the customers in advance (at least 3 months) through letters before increasing any charges. There are many customer who are getting humiliated and harassed by HDFC unethical treatment to existing customers
Can we file an RTI against HDFC in such a case..
I suggest all the borrowers not to go to HDFC and save you money. This is a cheat bank.
Join "SAY NO TO HDFC HOME LOAN" orkut community.
I suggest to all borrowers please stop the payment towards EMI to HDFC on account o[censored]nethical practices ( like prepayment charges 3 % in case of loan transfer, not following the definition of Floating rate as explained during loan application submission how the floating rate can be differ for banks huge difference 8% - 13 % etc..).
Please submit the notification mentioning all unethical practices of non-payment to HDFC from your side prior to stop the payment towards EMI. You may take the receipt from HDFC on this notification.
Let HDFC file the legal suit against the borrowers.
The concept of floating rate is not monitored by RBI.

They offer 9.5 % for new customer and then increase it to 11 or 12 % beware of these people they are looting poor customer openly
I have also faced the same problem. They have increased the pre closure charge 2% to 3%. I have a long fight in this issue with HDFC. I have shown the application form to them where it is clearly mentioned 2% pre payment charge. But they are denying that. They are saying in agreement it is mentioned that the rate will be decided at the time of execution.

I am thinking to lodge a complain in Consumer Forum. Is it the right place for taking legal action against HDFC?
I am also in the same boat. I have take a huge loan from HDFC and now when I want to exit because of their high interest rates, they have increased the pre-payment penalty.
Why can't RBI rein in these type of scoundrels? What should we do against it?

I have created a group for HDFC home Loan customers.It shall tackle the issues related with HDFC .This Group is open to all HDFC loan customers of New Town Height and Express Grens Memebers or for any different property they may hold.We will only be discussing related with HDFC Home LOAN.

In case you guys have taken a loan from HDFC please join it.

Group Name Changed.

I also have loan from HDFC & its no fun paying them this high rate of interest.

They keep offering lower rates to new customers once they fall in tran the interest rate for them also goes up.

This group is for existing home loan customers.

Lets get together & Thanks for your support.


Nitin - Advocate
I also faced the same problem, i have the loan from hdfc bank from last year and it is know to everybody even my self that preclousure charges are 2% of outstanding loan amout and keeping this point in my mind i have planned to shift the loan from hdfc to sbi on 10th feb, i took the forclosure statment and they have mentioned 2% and I went to hdfc again on 27march and they mentioned me that forclosure fees is changed to 3%, i shocked hearing that. I don't understand how these banks are cheating to peoples why goverment is not putting them some control. why rbi is not asking to keep same rate across all the banks whether it's private or govt. and the new interest rate should be applicalbe to new as well existing to keep the transparency for all.

I am really very upset of paying money unnecessorily to hdfb since i can get the lower rate from other bank but since they have increased the forclosure charges i am in confusion what to do. Guys we all shoud go to rbi to make complaint against this bank.. it's a cheater
I am also a victim to this. Lets group and do a Dharna in front of HDFC bank. We should have banner against HDFC and also against Congress party who heads center. They have the power to control such a thing(via RBI actions/measures), but they are not doing so, since they are eating money from private banks. Let regroup and put up a big rally. I have created a group here, please enroll. The name is
My name is Anil and I live in Bangalore. Let plan to group up and have a rally to protest. Please read the message on the above group and provide your ideas aswell. Again you can reach me at: Reach me at [protected]
Same here i took loan from HDFC in 2002 in Floating Rate scheme and now they are charging me with 15% PA ROI. suprisingly they have never send me any letter informing me the change of interest rate.
I am of the opinion that we should form a group suing HDFC altogether
I can be reached on [protected]
Some days back, I received the foreclousre letter from HDFC with 2% prepayment charges, I have given the reference for the same and aks the HDFC if they will charge the 3 % I will stop all payment.
When I have asked HDFC loan personnel regarding the stop payment towards my home loan on account of 3% prepayment charges. This should be applicable to new borrower as they give the all benefit to new borrower in order to trap them.
They said, we will consider the case. I hope so they will do.
Without Sanction of Loan they have deposited my Cheque as processing charges.

As informed earlier without santion of the Loan the Cheque will not be deposited in the bank.

And secondly customer care doesnt take the responsiblity as they say that the File is not be generated so they cant do anything when i checked with the represantative they told me that they will refund me within a week but 10days past and they have give me the amount and no nobody is attaining my call where should i contact and to whom is these and bank..HDFC...surpirses and I want my interest also for 1Month 15Days.


Post your Comment

    I want to submit Complaint Positive Review Neutral Comment
    HDFC Bank
    Customer Care Service
    Customer satisfaction rating
    HDFC Bank Phone
    +91 22 6160 6161
    +91 22 2498 8484
    HDFC Bank Address
    Branch 542, Trade World, A Wing, Ground Floor, Senapati Bapat Marg, Lower Parel, Mumbai, Maharashtra, India - 400013
    View Full Information