[Resolved]  Reliance Capital — Home loan Interest rate

Dear Sir/Madam,

I, Anand S Raman, have availed of a joint home loan (RLHLMUM[protected] with my wife Neeru Kapoor from Reliance Capital on March 05, 2008 of rs. 35, 00, 000/- at 10.25% floating interest rate for a tenure of 240 months. The home loan, for a property in Thane (west), was sanctioned and the EMI of rs. 34, 358/- started April 05, 2008.

I received a letter dtd. 15th Nov, 2008 stating that the interest rate had increased by 50 basis points, ie. 0.50% effective 1st Nov, 2008 to 12% p.a. Reliance capital had revised the Emi to rs. 36694/- and increased the tenure to 296 months. The letter does not state whether the interest rate is floating or fixed.

I have called Reliance capital umpteen number of times to enquire about the change as an increase of 0.50% should have ideally resulted in our interest rate being 10.75% instead of 12%. Also, though Reliance capital acted like other banks at a time when the financial institutions were increasing their rate, now they are refusing to lower the interest rate when other banks have reduced their floating interest rates by almost 3% p.a.

This has caused a big dent in our financial planning and a lot of tension personally. I would request you to look into this matter and advise. Thanking you!

Anand S Raman
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