[Resolved]  Dewan Housing Finance Corporation [DHFL] — loan interest overcharge and misguided

Jul 21, 2017

Updated by Sunita Vijay Joshi Dear Madam,

Thank for the response ! Unsatisfied with cause.

We refer to your query regarding the applicability of the new rate of interest of 8.35% on your loan application no. 00003320.

So these are the new rate applicable to my account and the rate was charged last 2 years which is reduced all over market for NBHC and RBI which not at all reduced to my loan account since my loan id floating rate applicable.

Is it not true madam that since its automatically need implement the DHFL charged fees 2950/- with stamp paper of 200 to get reduce rate. If am ordinary person not able to understand that when get interest reduce for home loan cause we are busy in daily job and family schedule, Bank keep overcharge us since we not come initiative to get reduce loan amount.

The justification of yours "We are constantly monitoring the market conditions and earnestly seek to pass the benefit of any decrease in our cost of funds to the customer." defiantly not match with the actions practically happens.

Please clear me about my last 2 years home loan interest atleast which not get reduced by any cause and now how can you compensate me the same and how can assure your customers that your Motto " Ghar Jaisa Loan" Its means we are family, you not informed, discussed, service to your customers about their liabilities, cut of rates automation and charges them service on basis of formalities (mandatory terms).

My loan is 5 years now and am not going to so deep to check what every year whenever market Home Loan Repo rate reduced you pepole overcharge me, As confirm with RBI bank at least had confirm that all bank got relief of repo rate 15/01/2015 accordingly that after its continuously reduced.

Please look in to the matter

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Thanks & Regards,
Sunita Joshi
Accounts Officer
Inline image 1
Buima New Building Materials (India) Pvt. Ltd.,
No- 1512A, 15th Floor, Wing- C, Kailash Business Park,
Vikhroli Park Site, Vikhroli West,
Mumbai- 400079
Mail id: [protected]@buimaindia.com
Mobile: [protected]

Jul 24, 2017

Updated by Sunita Vijay Joshi Thanks & Regards,
Sunita Joshi
Accounts Officer
Inline image 1
Buima New Building Materials (India) Pvt. Ltd.,
No- 1512A, 15th Floor, Wing- C, Kailash Business Park,
Vikhroli Park Site, Vikhroli West,
Mumbai- 400079
Mail id: [protected]@buimaindia.com
Mobile: [protected]

Jul 24, 2017

Updated by Sunita Vijay Joshi Dear Sir,

With regard to your below email, we would like to inform that your loan application no. 00736450 was disbursed in November 2011 at the applicable Rate of Interest at 11.25%. Due to tight liquidity and prevailing money market conditions his increased to 11.60% by January 2014 - When the rate increased has any charges belong to pay me to bank and bank ask me to meed branch to approve the high rates.I am asking this question with you below point."to reduce your ROI to 9.00% upon payment of applicable conversion fee for Rs.2500 + taxes."

Thereafter, we have reduced our Retail Prime Lending Rate by 40bps (0.40%). The benefit of reduced cost of borrowing has been passed to your account by reducing the ROI on your loan account thrice i.e. by 10bps in May 2015, by 20bps in November 2015 and by 10bps in November 2016 to 11.20%. - So you means say that Repo rate for housing loan declare by RBI not for your guidelines you have your own costing which not publically anywhere announce so we can compare as market showing that the interest rate for home loan get reduce we waiting for DHFL announce Retail Prime Lending Rate for existing customers, or customer need to regular investigate.

As a NHB registered Housing Finance Company, we raise our funds from capital markets / financial institutions and our cost of funds are purely linked to prevailing market rates. The Rate of Interest depends upon the movement of Interest rates in the economy and our reference cost. Therefore, we are dependent on actual interest rates in the economy to reduce interest rates. - In another circular, NHB instructed HFCs not to discriminate between old and new customers. Often, in their bid to attract new customers, HFCs charge lower rates from new customers as as compared with the rates charged from old customers. According to the NHB circular, “Charging of higher interest rate to old customers against the new customers puts them to great disadvantage, besides the practice being discriminatory. The practice also generally lacks in transparency and fairness... HFCs are advised to apply uniform rates of interest to old and new borrowers who have same credit or risk profile.” Is it also applicable



Repo Rate is the rate at which RBI offers banks short term borrowings. This means that change in Repo Rate will impact cost of borrowing of banks. Reduction in Repo Rate means that banks can borrow money from RBI at a lesser rate. Kindly note, RBI does not ask banks to lower their Rate of Interest on existing portfolio due to lowering of Repo Rate. However, the reduction in cost of borrowing allows Banks and FI’s to offer ‘Fresh Loans’ at lower rates.- The Reserve Bank of India Tuesday cut its key interest rate by 0.25% in its first monetary policy review for financial year 2016-17. The repo rate, the rate at which RBI lends money to commercial banks, now stands at 6.5%.This implies a reduction in the rate helps banks borrow money at a cheaper rate and vice versa. Whenever banks have any shortage of funds, they can borrow from the RBI.Similarly, the reverse repo rate which stands at 6% is the rate at which RBI borrows from banks.Therefore, when the interest rate is low, lending by banking system becomes a bit cheaper, leading to a fall in EMI, thereby providing a boost to industry and economy in overall.The twin rates are also a key weapon for the RBI to keep a rein on inflation. Raising the repo rate in a high inflation scenario helps RBI to disincentivise banks to borrow money. This reduces money supply in the economy and helps in keeping inflation under control.Similarly, RBI takes the contrary position when inflation moves southward.Now, a reduction in the key interest rate or repo rate will have the following effects:

Effect on consumers: Naturally, a fall in the interest rate prompts one to save less and spend more. Due to low interest rate, loans, particularly home loans will see a rise and this benefits the real estate market.


However, considering your clean repayment record we would like to offer you our conversion scheme. Whereby, we are allowing you a chance to reduce your ROI to 9.00% upon payment of applicable conversion fee for Rs.2500 + taxes. In case if you wish to opt for the scheme, we request you to kindly visit our Thane branch. - If higher rate charged by banks not take my permission and not call me to visit branch why should when market get reduced the home loan all over india DHFL pepole asked me to pay 2250+ Tax ... Why this monopoly of no options for customers . on January 1, 2017, reduced its lending rate by a good 0.9% after prime minister Narendra Modi in his new year eve address, urged the banks to focus on the needs of poor and lower middle-class and middle-class.So they forgot that national housing banks are not going to folloew this rules cause they are not under RBI repo rates.

My questions are still same cause whatever the process you made is anywhere will found in customers benifits at any point... did we take loan so you become saokar and we pay you interest and charges on round and round process.If the system of goverment of India want that poor and middle class people can get the home if financial companies like you charging charges and interest so much what the use. Where is justice in all this case to me if was seen from Nov 2011 @ 11.25 to July 2017 last 6 years almost only 0.05% rate of intrest get reduced o my account. What kind of justification where i was searching found that market reduced by 2% & 3% My interest counted in just .05% and will get satisfied with this. "NO"

Jul 24, 2017

Updated by Sunita Vijay Joshi Dear Sir,

With regard to your email, we would like to clarify once again: You just repeating thats you have your protocol your process you dont understand the real situation and customers complaints .

1. Please refer our reply, necessary reduction has been passed on to you in the last 24 months. The conversion scheme is not part of your loan agreement, the scheme is offered to customers with clean repayment track record. Hence, in case if you wish to opt for scheme, you are required to pay conversion fee.- Why should we need to pay any fees for any scheme if we are existing customer with clean record. Its bank who has offer and approach us without any charges as service for maintaining good record. The conversion scheme is not part of your loan agreement - Why should this column not been part of agreement then if its for customers benefits its should be maintain and with no cost

2. Please refer to our clarification, Repo Rate is Re-purchase rate; at which RBI offers loans to Banks. Reduction in Repo Rate means Banks can borrow from RBI at rate lower than before. This does not mean Banks need to lower their Rate of Interest. - OK Agreed that my knowledge is not that good for repo rate but the existing rate of interest for new customers 8.35 % then who already your customers who paying you lots of interest against the loan earlier year bank had never ever think equal for the same.If housing bank should equal served services to all customers did we are wrong to ask OR we dont have Rights to asked you back.


The conversion scheme has been offered to help you reduce the rate of interest to 9.00% - I need 8.35% that also the applicable 1.01.2017 and without any charges the amount in compensation.As equality rights and clean record and DHFL No consumer benefits protocol. I dont want to understand the process or your protocol cause am streight away questioning to your process which is highly risky for customers existing and the new additions.

We hope we have been able to clarify our decision. - I am still in same question that you please rather telling me protocol make necessary changes for customers otherwise DHFL get very BAD impression in market as already established. Its not me only but slowly with mouth to mouth all over you get Bad publicity if you really just been greedy and make all process on your terms and profits.

Jul 24, 2017

Updated by Sunita Vijay Joshi Dear Ms Joshi,

As clarified before, the scheme is not part of your loan agreement. We have already passed reduction towards portfolio including your loan account. Hence, if you wish to opt for scheme, you will have to pay necessary charges. - Sir if you are ready to stick on your process and repeatating same am also stick on my questions and repeating same points until you dont understand my Point. As I mention am really understood your process but my questions Why should we need to pay any fees for any scheme if we are existing customer with clean record. Its bank who has offer and approach us without any charges as service for maintaining good record. The conversion scheme is not part of your loan agreement - Why should this column not been part of agreement then if its for customers benefits its should be maintain and with no cost
As clarified in our reply earlier today, the reduction in cost of borrowing allows Banks and FI’s to offer ‘Fresh Loans’ at lower rates. This does not have impact on loans borrowed earlier at higher rates.-Rate of interest for new customers 8.35 % then who already your customers who paying you lots of interest against the loan earlier year bank had never ever think equal for the same.If housing bank should equal served services to all customers did we are wrong to ask OR we dont have Rights to asked you back.

We hope we have been able to clarify our decision. - I need 8.35% that also the applicable 1.01.2017 and without any charges the amount in compensation.As equality rights and clean record and DHFL No consumer benefits protocol. I dont want to understand the process or your protocol cause am streight away questioning to your process which is highly risky for customers existing and the new additions.

I am still in same question that you please rather telling me protocol make necessary changes for customers otherwise DHFL get very BAD impression in market as already established. Its not me only but slowly with mouth to mouth all over you get Bad publicity if you really just been greedy and make all process on your terms and profits.

Jul 25, 2017

Updated by Sunita Vijay Joshi Dear Sir,

We would like to inform that your loan is being run as per terms of loan agreement, if we abide by the terms duly signed and executed by you, then you need to abide by terms as well. - In that time we dont even realise that the DHFL had this kind of PROTOCOL against customer, hidden ofcourse that flotting rate is as per RMPL which is not as per RBI cut of rate for housing loan and that also in margin which is just peanuts.

The PMAY – ClSS scheme is applicable for loans disbursed from June 2015 onwards and this does not apply to your loan so if its not added in loan agreement cause its introduce in 2015 - why should we also liable to pay any fees for the same since we are customers before that so its been automatically add for us and the new cum clients need to pay for this and if new customer getting 8.35% why should not this scheme also apply same rate why charged again 0.75% more .

The reason for lower rate of interest available for fresh loan and why it does not have impact on existing loan has been explained to you in detail via our previous reply. The conversion scheme is provided by DHFL/ other FI’s as well to its existing customers, the scheme although different is always available and advertised on our website as well. However, the scheme can be changed from time to time and is not part of loan agreement. - The existing customers are liability for you so they all need to withdrawn their loans from your bank so you dont want your existing rate 8.35% available and the conversion rate also 9% and also pay you Fees. Sir Marketing strategy and Advertisement purpose whatever criteria you are using for customers please equally treat to existing customers. If the all existing customers start transfer loans from your bank have any benefits for searching new business is it real growth for you its obviously every moved customers is giving BAD and Worst Experience to the new customer.

Better sir you stop repeating me your protocol which I really understand but try to rethink about My compensation & demand of equality with No cost 8.35% Cause will start knock on door for my and like me whole customers of your bank.

Thanks
Sunita Joshi

Jul 25, 2017

Updated by Sunita Vijay Joshi The existing customers are liability for you so they all need to withdrawn their loans from your bank so you dont want your existing rate 8.35% available and the conversion rate also 9% and also pay you Fees. Sir Marketing strategy and Advertisement purpose whatever criteria you are using for customers please equally treat to existing customers. If the all existing customers start transfer loans from your bank have any benefits for searching new business is it real growth for you its obviously every moved customers is giving BAD and Worst Experience to the new customer.

Jul 25, 2017

Updated by Sunita Vijay Joshi Dear Sir,

We would like to inform that your loan is being run as per terms of loan agreement, if we abide by the terms duly signed and executed by you, then you need to abide by terms as well. - In that time we dont even realise that the DHFL had this kind of PROTOCOL against customer, hidden ofcourse that flotting rate is as per RMPL which is not as per RBI cut of rate for housing loan and that also in margin which is just peanuts.

The PMAY – ClSS scheme is applicable for loans disbursed from June 2015 onwards and this does not apply to your loan so if its not added in loan agreement cause its introduce in 2015 - why should we also liable to pay any fees for the same since we are customers before that so its been automatically add for us and the new cum clients need to pay for this and if new customer getting 8.35% why should not this scheme also apply same rate why charged again 0.75% more .

The reason for lower rate of interest available for fresh loan and why it does not have impact on existing loan has been explained to you in detail via our previous reply. The conversion scheme is provided by DHFL/ other FI’s as well to its existing customers, the scheme although different is always available and advertised on our website as well. However, the scheme can be changed from time to time and is not part of loan agreement. - The existing customers are liability for you so they all need to withdrawn their loans from your bank so you dont want your existing rate 8.35% available and the conversion rate also 9% and also pay you Fees. Sir Marketing strategy and Advertisement purpose whatever criteria you are using for customers please equally treat to existing customers. If the all existing customers start transfer loans from your bank have any benefits for searching new business is it real growth for you its obviously every moved customers is giving BAD and Worst Experience to the new customer.

Better sir you stop repeating me your protocol which I really understand but try to rethink about My compensation & demand of equality with No cost 8.35% Cause will start knock on door for my and like me whole customers of your bank.

Thanks
Sunita Joshi