[Resolved]  Lichfl — Monopoly in raising intrest rates

Dear Unmendu,

Recently, I am also one of the victim of malpractices of LICHFL, Delhi. The point is that the floating loan rate of 10.5 percent is only valid for three months. This is clearly mentioned in the sanction letter, i[censored] read it properly word by word. Thereafter, floating loan rate becomes a "Current LHPLR - 250 basis point". The LHPLR is quite high and now it is around 13.75 with effect from January 1, 2009. Earlier it was 14.5 percent on Dec 2008. This is their ploy to attract new customer as they show their floating loan rate much lower than the rest of the peer banks. But after three months, they are at par with other peer banks. The LIC agent would never tell you about it when it comes to your house for loan application. Besides this there are much more malpractices going out there which I would mention rest. I[censored] have any queries u can mail me.

Regards,
Sachin Goyal.

Dear Sachin,

I am totally agree with you that LIC HFL is not as transparent as they are showing in their fair practice code with customers.

Rgds
Manish

I have taken a loan with rate of intersest 7.25% now it is 11.75% when will it comes down, my emi is increasing and increasing.
be fair to us

Dear Sir
I fully agree with the comments made by Mr.Sachin Goyal; In the sanction letter i have, i didn't find any such phrase saying floating loan rate becomes a "Current LHPLR - 250 basis point" after 3 months. But despite that that is what has actually happened and the concessional rate of interest mentioned in the sanction letter is not adopted as the base from whcih every increase / decrease is calculated. This practice is totally unethical / unlawful and constitutes unfair practices. Let us unite and take up this matter seriously with LICHLF through the consumer forums.

Best regards
V Kalyanaraman [protected]

It was true when I submiited my loan appliction for Rs 16 Lakhs the Agent and Area Manager said the LIC rates are the lowest he quoted 8.75% and took the Processing fee of Rs 5000/- plus tax and they said the fees is 1% of loan value, as they were running loan campaign special rate is given to me, later when I recd the loan sanction letter it says the rate of ineterest is only for 3 months, then it changes to market rate of 10.25% and also they said balance Rs 3000/- plus tax has to be paid, as the offer period is over.this shows how the LIC agents & the officers are hiding the real facts and attarcting the people to achive their targets.

This is the same with my home loan too. I took at Mar 2009 with rate of interest as 8.75% and this changed after 3 months to 10.5% and now standing with 11.75%. This shows my home loan for 24 lac taken in 2009 for 20 years have now went upto 36 years with the same EMI.

What should I do? any help?

Don't know if I am trapped

Regards
Prabakaran
[protected]