LIC Housing Finance — Non Intimation of Foreclosure fees, Non Receipt of Loan Documents and High Interest Rates

Address:

Mumbai City, Maharashtra

Dear Respected Sirs / Madam, I am writing to you wrt my home loan account which i has secured from LIC Housing Finance Corporation. At the time of seeking the loan the executive had guided us to go for a Fixed Rate tenure and that i will be protected against any rate fluctuations. I believed him and took the same. Only to find out later that Floating rate interest are far lower rates as compared to the Fixed Loan rates. It also came to my observation that LIC Housing Finance was charging a higher rates compared to most other bank and has not revised the rates despite RBI lowering the rates. I am trying to reduce my monthly debt burden and suddenly find out that i cannot move my loan due to an exit barrier in the form of foreclosure charges and / or broken period interest charges. This was a shock and a surprise to me when i asked for a foreclosure letter from the LIC HF fort office and got to know The broken period interest/Foreclosure charges amount to INR 2.33 lakhs making the prepayment amount more than the loan amount sanctioned and disbursed by your organization by a good 2.50 lakhs. i.e 1.07 crores as against original disbursement of INR 1.045 crores (screenshot appended) Upion a little bit of survey i did find out that LICHF was following the guidelines by the RBI and the NHB which seem to give preference to Floating rate account holders as compared to Fixed rate account holder despite them being more in need to go for cheaper loan options to reduce their interest burden. I do appeal for some thought on this for account holders like myself who would save INR 5, 000 per month which over the tenure of the loan will be a good INR 15.00 Lakhs. Please do consider issuance of fresh guidelines for Fixed rate home loans as well and / or waiver off the penalty as per attached..