State Bank of India
Cheated by SBI in Education loan

I had taken an Education loan of Rs.2 laks from SBI in 2002 to pursue my engineering. The SBI manager told us that time as the policy is you have to pay the interest for 4 years during your study and then you have to pay the principal amount with in 5 years without interest as this was a shared loan of my father and myself. My father paid the interest for the first 4 years i.e. 2002 to 2005 till course complete.

Then we thought that we have to pay the principal of 2 Laks in next 5 years till 2010. We have not received any kind of acknowledgement from the bank also. In 2008 all of sudden the block my father's SBI salary account which is in a different branch. When he ask to the branch they told that it has been blocked by the other branch due to non payment of education loan. We went to that branch and ask about the issue. And all of the sudden we had a great shock when we heard that the principal amount has increased to Rs. 3 laks 20 thousands due to non payment of loan. We told them about the policy what has been told to us but they told that it was a mistake by the loan officer that time and he is not in that branch now.

And since than they are deducting 3K each month from my father's account for interest so that the principal would not increase.

I dont know how can i bank charge interest for 3 years without informing the borrower about the non payment of monthy EMI, as the policy what ever they showed us, it is clearly mentioed that the loan will be repaied as monthy EMI after the completion of the course. But for 3 years i had not get any kind of alarm/letter from the bank regarding the nonpayment.

Please suggest me what i can do now.

Company: State Bank of India
Country: India

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