Citifinancial Personal loan
Ref. (1):- Personal Loan Account Ref No: - 11721652
Sub:-Complaint for giving higher interest rate for Personal loan
with reference to the above, I, the undersigned, Ajay J. Naidu do hereby state that I, had obtained Personal loan for the sum of Rs. 25, 000/- vide the loan account under reference no. 11721652 @ monthly E.M.I. of Rs 1, 424/- out of which I paid 15 installments through my bank account in ICICI bank.
I had taken this loan from one of the Citifinancial bank branch in Hadapsar, Pune Maharashtra. When I approached on 20th April 2007 to this branch, I met a lady named Ms.Bhagyashri, who was going to handle my case. She gave me to understand about the formalities and documents needed for taking the personal loan. I asked her about the interest rate she told me it will be same as for a personal loan for other banks. Then I took all the required documents to the bank and met Bhagyashri there, she than took me to Ms.Nisha and Ms.Ewa Jamwal, who were the incharge and took my interview for the same. I had also asked about the interest rate to them, they also told me the same thing as Ms.Bhagyashri has told me before (This all happened verbally as the interview was taken no written document was given. Also at that time the interest rate was 21% for most of the banks). Ms.Nisha and Ms.Ewa Jamwal took my interview and took my documents to fill the forms and complete the formalities. No one in the bank till now has given me the clear idea of what rate of interest they are going to charge me.
When they told me the EMI amount of Rs.1424/Month, I calculated the same for 36 months and I was shocked, I immediately asked them to stop the procedure and cancel my loan (this was before they had actually logged in my file. Still Ms.Bhagyashri told me that the file has been logged in, now we can’t cancel your loan and if you insisted on doing so, we will be canceling the same but you will be the defaulter of banks, and you will not be able to get loan from any other bank here after (all this thing happened in about a 15 minutes of time). Ms.Bhagyashri further explained me to take the loan and keep the money in my ICICI bank account for six months and than close the same without any extra charges. She further added that it will also give advantage to me for taking any other loan (As I had given them to understand that I am taking this loan for a purpose of down payment against a purchase of a property in the interview) Ms.Nisha and Ms.Bhagyashri also said me that, with less documents and less rate of interest we (The bank) will be sanctioning my home loan. So un willingly on 23rd April 2007 I agreed for this and took the cheque, because no one never wants to be a defaulter of a bank, and it was my first ever loan. I gave my first EMI on 5th May 2007
I took the cheque and deposited in my ICICI Bank account, as advised by Ms.Bhagyashri. I kept it as it is for six months, paid the EMIs. After six months I again went to the branch on 9th Oct. 2007 to close the loan. When I went there Ms.Bhagyashri, Ms.Nisha and Ms.Eva jamval had left the job (as given to understand by the bank officials). Than I met Ms.Vanita there, I explained her every thing what happned with me. After listening to me she replied to me that, the interest rate which the bank has charged is as per the market rate at the time I took the loan. I asked her when the interest rates has gone to 35%, she explained me in very unprofessional manner that the market keeps on going up and down. Than she insisted to me to take a TOP UP loan, which can help me to reduce the interest rate. The amount they told me for closing the personal loan of Rs.25000 after paying EMIs of Rs.1424/- for six months was the same near to Rs.25000.
After that meeting with Ms.Vanita, when I went to the branch on date 10th Dec. 2007 the branch was closed. To find out why suddenly the branch has been closed without information. I called the call centre of citifinancial Bank and came to know that because of many fraud cases done through that branch we had closed the branch (I am having a recording of the same on my phone). I had received the letter regarding the same after 21 days from citifinancial. Since than I am receiving call from the call center for TOP UP loan. I came to know that the branch personal has been shifted to the branch at Fatimanagar, pune branch. I contacted there to Mr. Rajesh, (another un professional person by his attitude and language) he also was insisted on me to take a TOP UP loan.
About Insurance Offer:
At the time I took the Personal Loan, there was an offer of life insurance from Tata Aig, totally free along with the personal loan (as explained by Ms.Eva Jamwal). As already I was having three to four insurances policies of LIC, I refused to take the same. Ms.Eva Jamwal explained to me that it is totally free and I don’t have to pay any premium for the same. In month June 2007 (the next month after my first EMI of May 2007) I received a Premium Laps Letter from Tata Aig Insurance. Again I went to the branch to ask about the same, Ms.Eva Jamwal said to me that, the bank has given the insurance policy free to me, but the policy premium amount has to be paid by me. I don’t understand, if I was going to pay the premium and if I was in a need of a policy, why I would go to a bank for the same, I my self would have called any of the insurance agent and taken out the policy. No answer or solution for the same was given by any of the bank personal. I had also called the Tata Aig Insurance; they had also said to me that no such offer had been given (for free off course) and if the bank has told you so they had lied to you.
I request you to look into the matter and give me the advice for whom and how can I approach for the same. Please do reply as early as possible, if not the same complaint will be given to Consumer Court.
Thanks & Regards
Ajay J. Naidu
E Mail: firstname.lastname@example.org