I had availed of a personal loan from HDFC bank in October/ November for Rs. 140000, tfor 36 months. he bank would send me a statement for the EMI and I would pay the same on the stipulated time.
I decided to Preclose to the loan in July the principal outstanding was about 72, 000, the EMI billing cycle is on 7th of every month and the confirmation of amount payable comes through a statement which comes in post by the 15th of the month.
I had intimated in Writing (Fax) and by email about my intent to pre close the loan on the 3rd of July. I was informed by the bank that the request has been taken and will inform me accordingly about the amount to be paid.
When I got the statement by post in the following month I got a shock that the bank has levied a finance charge of Rs. 2400, over and above the penalty of 3% on outstanding principal and the principal amount itself.
When checked the bank claimed that the rtequest was processed on 8th of July (How convinient) and I have to pay finance charges for using 72000 for 1 month.
And when checked why was I not informed in time, the bank responded with a reply that only way the bank communictes in this matter is by postal mail, I am wondering when the loan is solicited the bank gets in touch through all possible channels but when it comes to a preclosure the bank hides behind all these excuses.
I have paid off the principal outstanding as well as 3% penalty but I have chosen not to pay the finance charge levied.
This incident is almost 18 months old now, I get a occasional call from the bank's so called recovery agents to pay up Rs. 9000 as with interest the amount has inflated to this and who have no clue about the whole case.
I want to know from the bank what was the valid reason to levy such a atrocious finance charge and why sould I pay for no fault of mine.
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