1. I am Rajiv Kumar Misra r/o 89-B, Vatika, Suncity Vistaar, P.O/ PS Izzatnagat, Bareilly.
2. I availed a home loan for Rs 3 lac vide his account number 1018121643 in the month of July/ Aug from Izzatnagar branch of your bank. The said loan was contracted on the than prevailing floating rate of interest @ 8.25%pa.
3. I am regularly paying the EMIs since then as had been contracted. Mean while your branch has informed me of another option of interest rate (Fix) @ 9%pa and informed it to be more beneficial owing to the apprehension of the increase in floating rate of interest depending upon the then prevailing banking norms.
4. That relying upon the advice of the branch manager I applied to the fixed rate of interest @ 9% ie 0.75% higher rate compared to floating to floating rate of interest in the month of Nov. I was charged Rs 8119/- as fee for conversion from floating rate (8.25%) of interest to Fix rate (9%) of interest. I paid the said fee in the hope that the new rate of interest shall remain Fixed (Constant) throughout remaining period irrespective of any change in bank interest rate.
Special to note that I paid such a huge amount of fee despite utter surprise and dismay that the fee is being charged even when my client is opting to pay higher rate of interest (8.25% to 9%).
5. During May I took a statement of this account from said branch and came to know that the bank has changed the rate of interest to 9.5%. I wrote the matter to AGM, Zonal Office, Bareilly & the interest rate was rectified and brought back to 9%. A letter of sorry feeling for inconvenience caused was received by my client from SBI’s zonal Office, SBI, Bareilly.
Again on 07th Nov the interest rate was changed from 9% to 9.25% and once again the rate was enhanced to 12.75% on 03rd Feb. This was again changed to 12% on 18th Feb. Whereas the SBI is claiming that it can change the interest rate every after two years.
6. I surprisingly and disappointedly received a letter in Nov/ Dev 2008 from the SBI’s zonal office, Bareilly mentioning that henceforth I would be charged the interest @ 12.75% pa with a rider that either my client should agree to the new rate of interest ie 12.75%pa else should pay the outstanding loan amount at once and quit banking with SBI.
7. I on enquiry from the bank was informed that the bank reserves the right to change and enhance the rate of interest every two years and I had agreed & signed an agreement to this effect.
8. Aggrieved by the said arbitrary action on the part of the bank I approached to almost all levels of the bank officials but to no avail.
9. Lastly I approached to the Chairman of State Bank of India who assured to redress the problem, but even after a lapse of almost seven month no action is taken to address the genuine problem of my client. As a result I am being charged at a rate of 12% instead of 9% as had been originally contracted upon.
10. That it is point to note that no bank is charging the rate of interest of 12% on housing loan, however a regular and old client of mine is being charged at the said rate. Over & above the Zonal office of SBI intimated that I had only one time option available for converting from floating to fix or vice versa.
11. In between when all the installments to affect this loan were being paid timely, the bank deducted an amount of approx. 1500/- from the S/B account of my client to insure the house. The bank did not feel the need to take consent from my client or even did not inform my client that his house is being insured.
In view of above this matter is submitted to you anticipating a justice full & appropriate action.
Ques 1. Does the bank inform / let its customer/ borrowers read the details of agreement before taking signature on agreement papers.
Ques 2. Is the charges of the bank for converting the rate of interest from floating to fix are genuine even when a borrower is opting to pay higher rate of interest.
Ques 3. If as per contract, bank reserves the right to change the rate every after two years, then why the change did not take place in Nov.
Ques 4. If the changes were to be made after two years then why the changes in rate of interest were made in May which was reverted back when opposed. That is not all the change again took place thrice within three month in between Nov & Feb. What about the contract which says that the changes shall be made once in two years.
Ques 5. Is the option given to borrowers for applying to convert interest rate in only once in whole of repayment period of the loan, whereas the bank reserves the right to change the rate every after two years? How can bank justify this? Who is claiming be customer friendly.
Ques 6. Does the bank has the right to transect the S/B account of a customer without his knowledge and even without informing him after the transaction is done.
Ques 7. Bank has insured the house of a borrower to safe guard its own interest. Why the installment is deducted from S/B account of my client, when client is paying his dues regularly and also has provided two guarantors to safe guard the interest of the bank. Why does bank need the guarantors than.
Ques 8. Is the bank so care less to its customers, that the matter taken up at all levels is not taken care of.
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