Reliance Commercial Finance — Loan against property - very high interest, charged/ loan tenure extended without any information.

Address:

600040

Chennai
20/10/16
To
Dr. Rameshwar oraon
Chairperson
National commission for scheduled tribe
6th floor, b wing
Loknayak bhavan, khan market
New delhi-110003

Respected chairman,
Financial harassment by reliance commercial finance - my reliance loan no. Rllpche[protected] availed on 28th sep 2007 for rs.1000000/- (Rs ten lacs only) repayable in 108 months @13.5%.

I wish to bring the following for your kind notice and justice.

I belong to scheduled tribe community and life member of abavp. I had availed loan by mortgaging our residential flat at anna nagar chennai from reliance commercial finance chennai in sep 2007 @13.5% floating rate of interest. The loan amount is rs.1000000/- (Rupees ten lacs only) repayable in 108 monthly instalment starting from nov 2007 to october 2016. The loan amount with interest was fully repaid and 108 instalments were paid through emi promptly upto oct 2016.
When i verified my cibil score in oct 2015, the loan outstanding under the above loan was on the very high side and up to that time there was no communication from reliance commercial finance. Immediately, i took up the issue with reliance commercial finance in oct, 2015 itself.
In reply to my mails they have simply informed me that the loan was availed under floating rate scheme and as and when the cost of fund increases they will increase the interest rate and the present rate of interest is 17.21% and they are empowered to do so as we have signed loan agreement form with floating rate clause. I have to pay another 20 instalments in view of increase in interest rate to close the loan, which mean another rs.320840/- i have to pay to close the loan. I was shocked to see such communication from them, as till then, no communication was ever received from reliance regarding increase in interest and revision of extension of repayment period.
I have taken up the issue again and requested them to clarify the following points.
Whenever they are increasing the interest rates, the customer has to be informed about the same and any revision /extension in repayment period also has to to intimated to the customer so that a decision can be taken by the customer as to the continuance of loan. Many times they have increased the interest rate during the tenure of the above loan but never communicated the increase in interest rate and also revised repayment schedule to me. I have requested them to provide proof in sending communication to me regarding interest rate increase and revision in repayment period in any means (Oral/letter/mail etc) but they never informed the required details and simply repeating that "letters to that effect were sent you from time to time". It is false statement. Had it been informed i would have gone to other financial institutions with much lessor interest and this much of financial burden wouldn't have taken place.

I have informed them that though we have signed for floating rate of interest, had the increase interest rates/extending repayment period on their own been informed, i would have closed the loan or increase the repayment amount and merely accepting floating rate of interest while executing the documents does not confer them any unlimited right to arbitrarily charge unlawful higher interest without complying any rbi/mof norms. With regard to plr changes i have informed them that prime lending rates normally based on the factors like cost of fund, market rate, administrative cost etc and during the above tenure only reduction in plr takes place and public sector banks and other financial institutions adhered the norms and reduced the interest rates by 150 basis points to 200 bps and challenged them to name any govt/private bankers charging such higher interest during the above tenure. But no reply from them.
After my prolonged complaint (Several mails), they have informed me as per their mail dated 28/06/2016 that they have offered reduction of interest rate from the prevailing rate of 16.96% to 15.00 % subject to clearance of outstanding dues? And subject to 0.50% switch fee on outstanding principal against my request to reverse all unlawful interest charged in my loan account from the beginning. Their offer is simply collecting their illegal interest charged upto june 2016 from me and also i have to bear the irrelevant switch fee of 0.50% which makes no difference at all and so i have not accepted the same and again requested them to
Provide proof for sending communication with date for increase in interest rate and revision in increased repayment period/ details of their office board note justifying their plr increase as and when the increase takes place.
However, again they have sent mail dated 05/10/16 without providing any of the details sought for by me and reiterating their stand that i have to pay as demanded by them and everything is as per norms and forcing me to pay extra 20 emi i. E.
Rs.320840/ like local money lenders which is totally illegal and clear harassment and the financial burden is unimaginable. (For increasing interest they are quoting the agreement terms. But they gladly ignored that the same agreement terms says that the lender shall inform the borrower about the variation in the interest/interest rates in due course as per clause 2.2 a) para 3.) and not complied with the same with malafide intention.

No financial institutions in our country (Govt/private) ever charged such higher illegal interest for such loan ever during the above tenure.

For the past one year i took up the issue with reliance for redressal of my complaints (Several mails sent) and without any bonafide intention they have simply ignoring the genuine grievances of a customer who all along repaid the instalments as agreed for 108 months promptly and the loan is always standard asset.
Normally financial institutions offer interest rate reduction for a borrower if they are prompt in their loan repayment even for medium term loan and in my case though it is long term the payment is always prompt, instead of extending such gesture they have casually increased the interest rates that too without any communication intentionally, which is mainly due to my prompt repayment.
Since i have already paid 108 instalments (From nov 2007 to oct 2016) as agreed i pray your good selves to get my houseflat documents from reliance commercial finance and to stop further harassment from them and save me from the unbearable illegal financial burden and do justice.

Reliance chennai address.

Reliance capital ltd
Reliance home finance division
Reliance house - ground floor
5, haddows road
Nungambakkam
Chennai-600006
Phone.[protected]/ [protected]

Reliance mumbai address

Reliance capital ltd
Commercial finance division customer care
6th floor, south wing
Santa cruz east,
Mumbai-400055
Mail id. [protected]@mailsy. Custhelp.com
Thanking you
Yours faithfully

P. Dhanarakshakan
Z-181 first floor
Vth avenue. Annanagar west
Chennai-600040
Mobile-[protected]/[protected]
Mail id. [protected]@gmail.com

Chennai
30/10/16
To
National consumer forum

Sub. Financial harassment by reliance commercial finance - my reliance loan no. Rllpche[protected] availed on 28th sep 2007 for rs.1000000/- (Rs ten lacs only) repayable in 108 months @13.5%.

I wish to bring the following for your kind notice and justice.

I had availed loan by mortgaging our residential flat at anna nagar chennai from reliance commercial finance chennai in sep 2007 @13.5% floating rate of interest. The loan amount is rs.1000000/- (Rupees ten lacs only) repayable in 108 monthly instalment starting from nov 2007 to october 2016. The loan amount with interest was fully repaid and 108 instalments were paid through emi promptly upto oct 2016.
When i verified my cibil score in oct 2015, the loan outstanding under the above loan was on the very high side and up to that time there was no communication from reliance commercial finance. Immediately, i took up the issue with reliance commercial finance in oct, 2015 itself.
In reply to my mails they have simply informed me that the loan was availed under floating rate scheme and as and when the cost of fund increases they will increase the interest rate and the present rate of interest is 17.21% and they are empowered to do so as we have signed loan agreement form with floating rate clause. I have to pay another 20 instalments in view of increase in interest rate to close the loan, which mean another rs.320840/- i have to pay to close the loan. I was shocked to see such communication from them, as till then, no communication was ever received from reliance regarding increase in interest and revision of extension of repayment period.
I have taken up the issue again and requested them to clarify the following points.
Whenever they are increasing the interest rates, the customer has to be informed about the same and any revision /extension in repayment period also has to to intimated to the customer so that a decision can be taken by the customer as to the continuance of loan. Many times they have increased the interest rate during the tenure of the above loan but never communicated the increase in interest rate and also revised repayment schedule to me. I have requested them to provide proof in sending communication to me regarding interest rate increase and revision in repayment period in any means (Oral/letter/mail etc) but they never informed the required details and simply repeating that "letters to that effect were sent you from time to time". It is false statement. Had it been informed i would have gone to other financial institutions with much lessor interest and this much of financial burden wouldn't have taken place.

I have informed them that though we have signed for floating rate of interest, had the increase interest rates/extending repayment period on their own been informed, i would have closed the loan or increase the repayment amount and merely accepting floating rate of interest while executing the documents does not confer them any unlimited right to arbitrarily charge unlawful higher interest without complying any rbi/mof norms. With regard to plr changes i have informed them that prime lending rates normally based on the factors like cost of fund, market rate, administrative cost etc and during the above tenure only reduction in plr takes place and public sector banks and other financial institutions adhered the norms and reduced the interest rates by 150 basis points to 200 bps and challenged them to name any govt/private bankers charging such higher interest during the above tenure. But no reply from them.
After my prolonged complaint (Several mails), they have informed me as per their mail dated 28/06/2016 that they have offered reduction of interest rate from the prevailing rate of 16.96% to 15.00 % subject to clearance of outstanding dues? And subject to 0.50% switch fee on outstanding principal against my request to reverse all unlawful interest charged in my loan account from the beginning. Their offer is simply collecting their illegal interest charged upto june 2016 from me and also i have to bear the irrelevant switch fee of 0.50% which makes no difference at all and so i have not accepted the same and again requested them to
Provide proof for sending communication with date for increase in interest rate and revision in increased repayment period/ details of their office board note justifying their plr increase as and when the increase takes place.
However, again they have sent mail dated 05/10/16 without providing any of the details sought for by me and reiterating their stand that i have to pay as demanded by them and everything is as per norms and forcing me to pay extra 20 emi i. E.
Rs.320840/ like local money lenders which is totally illegal and clear harassment and the financial burden is unimaginable. (For increasing interest they are quoting the agreement terms. But they gladly ignored that the same agreement terms says that the lender shall inform the borrower about the variation in the interest/interest rates in due course as per clause 2.2 a) para 3.) and not complied with the same with malafide intention.

No financial institutions in our country (Govt/private) ever charged such higher illegal interest for such loan ever during the above tenure.

For the past one year i took up the issue with reliance for redressal of my complaints (Several mails sent) and without any bonafide intention they have simply ignoring the genuine grievances of a customer who all along repaid the instalments as agreed for 108 months promptly and the loan is always standard asset.
Normally financial institutions offer interest rate reduction for a borrower if they are prompt in their loan repayment even for medium term loan and in my case though it is long term the payment is always prompt, instead of extending such gesture they have casually increased the interest rates that too without any communication intentionally, which is mainly due to my prompt repayment.
Since i have already paid 108 instalments (From nov 2007 to oct 2016) as agreed i pray your good selves to get my houseflat documents from reliance commercial finance and to stop further harassment from them and save me from the unbearable illegal financial burden and do justice.

Reliance chennai address.

Reliance capital ltd
Reliance home finance division
Reliance house - ground floor
5, haddows road
Nungambakkam
Chennai-600006
Phone.[protected]/ [protected]

Reliance mumbai address

Reliance capital ltd
Commercial finance division customer care
6th floor, south wing
Santa cruz east,
Mumbai-400055
Mail id. [protected]@mailsy. Custhelp.com
Thanking you
Yours faithfully

P. Dhanarakshakan
Z-181 first floor
Vth avenue. Annanagar west
Chennai-600040

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