[Resolved] HDFC Bank - Home Loan — high rate of interest

[Resolved] HDFC Bank - Home Loan — high rate of interest

A ANILKUMAR RAVI THAYYIL from Mumbai, Maharashtra

To , HDFC LTD, Name : Anilkumar Ravi Thayyil Loan a/c No :[protected] Loan amount :14,61,000/- Current Rate OI: 9.25(Floating) HDFC branch : Virar (Maharashtra) Branch manager : Samir sharma I have taken home loan from HDFC, Floating rate category. When RBI started to increase the rate of interest, the bank increased their PLR rate. But when the rate was reduced Bank did not reduce the interest rate to extend of 8.25% to 8.75% , the rate which they are offering to their new customers. In the month of april 2009 I approached the bank to reduce my rate of interest to 8.25 or 8.75,the rate at which they are offering to their new customers. The bank only reduced my interest rate by 0.75 basis point for which I had to pay a processing charge of 0.50% of my principle amount of loan taken. In the month of August 2009, I again approached the bank to reduce the rate of interest , they gave me a offer to reduce 0.75 basis point by paying a processing charge of 0.5% of my principle amount of loan and in addition to that if I pay 1.50% more as processing charge the rate would further reduce by 0.50% basis point. I paid 0.50% of my principle amount of loan and reduced the rate of interest by 0.75 basis point. After paying around 15000/- RS as process charges I am still paying 9.25 % interest on my loan where as the new customers the bank is offering 8.25 to 8.75% interest rate. Please convert my existing Home loan to the New loan rate and should be done without any conversion charges. I am also taking the matter to the Indian consumer forum with the following complaints. 1) Why is bank charging more, when the rate is less (cheating or not) in floating rate method . 2) Why are bank charging the processing fees to decrease the rate of interest and still they are not making the rate equal to new customers (which is still 1% lesser ) 3) Why is the bank not transparent with their existing customers.(Banks has never approached any existing customers to tell them about the scheme of reducing the interest rate by paying conversion charges, nor in their web site they have mention about it.) Kindly revert me back, waiting for a positive reply. Regards AnilKumar Ravi Thayyil Cc :HDFC Was this information helpful? No (0) Yes (0)
Aug 14, 2020 Complaint marked as Resolved
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Comments

vyadlapalli

This is how all these housing finance banks are cheating their customers.I too got cheated by HDFC bank.

I got home load 9.75%, now its 8.25% and they are asking 0.5% of out standing amount to change the ROI to 9% which is 17500 in my case.
Recently RBI introduced Base Rate System to Banks to overcome these kind of cheating but some how RBI excluded the non banking systems from the Base Rate system, so all these housing finance companies (non-banking-finance companies) still continue to cheat customers.
I believe that the mistake is with RBI, because it is allowing such practices. I hope that RBI will soon understand this punish such banks.

Also I believe that these kind of cheating can be found by these banks what ever the rules RBI makes to protect the existing customers.
So I believe that the safest solution to this problem is not to impose any pre-closure charges, so that we can switch the banks, if banks do not reduce the interest rates according to market.
I wish you all good luck.
venkatarao.[protected]@gmail.com
HDFC victim, Loan A/c #:[protected]

prithvi_flyboy1

from Mumbai, Maharashtra

My story is a carbon copy of Mr Anil kumar's story. I too had paid processing fees twice to HDFC Ltd to lower the rate of interest . But stil its higher than that what they r offering to new customers. And a greater mistake has been committed by RBI by leaving Non-banking financials out of base rate system. On enquiring about reduction in rate further, the bank officials had asked for 0.5% of outstanding balance as processing fee.
I think its high time that RBI should take some concrete steps to fix up these cheaters.

prithvi s chauhan

HDFC victim, Loan acct no[protected]

souvikbanerjee

from Mumbai, Maharashtra

I completely agree with the views expressed.
I also had to pay 0.5% processing fees, but still paying nearly 2% higher interest rate than the new rate that HDFC is offering to it's new customer.
I didn't find any information regarding the base rate scheme from HDFC.
When I tried to switch my load to some other bank they asked for an 3% penalty on outstanding and more over refused to give NOC so that I can start processing my home load elsewhere.
When the rates go up they take immediate action but when it comes down they simply ignore.
There should be strong guidelines from RBI regarding the change of rate in case of floating rates.

S Banerjee.
Loan a/c no: [protected]

Svanky

from Bengaluru, Karnataka

Yes I totally agree with it.

Svanky

from Bengaluru, Karnataka

Even iam the victim of the same.
I dont know what RBI guys are doing? No control over any private financial banks/institutions.
I dont know why the Govt. involvement is not there in all these financial matters in the interest of the common man. I think nobody is interested in the common man.

I think these HDFC buggers would be giving RBI bribe, in order not to initiate action against them.
I think there is no use mentioning all our plights/cheatings in this forum, except for venting our angers.

Anyway our whole Govt. is corrupt; where there is no return.
Our constitution is full of Loop-Holes, wherein companies/corporations like these flourish & cheat common-man.

Nobody gets affected.
Govt. gets its bribe; only the victim at the end of the day is common man. Remember!!

Capt. Gopinath

p gupta

from Ghugus, Maharashtra

I AGREE WITH THE COMPLAINT, AS RBI WANT TO TRANSPARACY, BUT BANK START LOOTING TO EXISTING CUSTOMER, IT SEEMS BANKS MIS USE THE RBI CIRCULAR OR RBI ALLOWED THEM A WAY FOR LOOTING THE EXISTING CUSTOMER.

IN MY OPENION IT SHOULD FOLLOWINGS:-
1.IF ANY CUSTOMER IS UNDER PLR SYSTEM AND ADOPT PLR BASE LOAN AS FLOATING BASIS, THE BANKS SHOULD CONVERT IT AUTOMATICLY IN NEW BASE RATE SYSTEM AND COMPLETELY FINISH THE GAP OF NEW AND OLD CUSTOMERS AND IF BANKS WANT TO GIVE ANY BENEFIT THAN IT SHOULD COMPULSARY FOR EXISTING CUSTOER BUT IF THE INCREASE ANYTHING ADDITION IT CAN APPLY ONLY NEW CUSTOMER, MEANS BANK CAN PASS BENEFIT TO EXISTING CUSTOMER BANK CAN NOT IMPOSE ANYTHING ADDITION ACCEPT INCRESE OR DECREASE IN BASE RATE.
2.SO RBI NEED TO CIRCULATE A SYSTEM OF BASE RATE FOR ALL OLD AND NEW CUSTOMERS, OTHERWISE THERE WILL NO USE OF FLOATING RATE OF INTEREST FOR EXISTING CUSTOMER.(I THINK THIS ISSUE CAN CHALANGE IN COURT AS IT IS MANUPULATION AND SUPPORTED BY RBI TO BANKS AND IT IS ALSO AGAINST CODE OF CONDUCT).