This is a matter pertaining to HDFC Bank, Aliganj, Lucknow. I had applied for and was sanctioned a Gold Loan for Rs. 1, 83, 000/- on 10.11.2008 on the following broad terms and conditions:
i. Interest 15.25% per annum
ii. Loan was sanctioned for 180 days.
iii. The loan was renewable for further period as desired on the same rate of interest.
Disbursal against this loan was made on 10.11.2008. I wish to bring to your kind notice the following in connection with this disbursal:
i. I was disbursed a sum of Rs. 1, 66, 153/- only
ii. Out of the balance a sum of Rs. 3084/- was deducted as processing fee and
iii. An amount of Rs. 13, 763/- was retained by the bank as advance interest. This was highly irregular as this not only increased the rate of interest but also made a mockery of fair banking practices. In effect I paid an amount of Rs. 1600/- more than what should have been paid.
iv. The valuation was done by a valuer of the bank who classified all my 23 / 22 carat jewelry as 19/18 carat. I had no say in the matter.
I was in dire need of money and had no option but to take the amount offered.
2. At the time of this disbursement I was told that I could renew this loan on or after its due date for which only interest would be charged.
3. Today, i.e. on 11.06. I went to the bank for renewal of the loan but was surprised when the dealing executive Shri Pankaj Tripathi asked me pay a sum of Rs. 18, 072.00 The detail of which was as follows:
i. Advance interest @ 16.25% for next 180 days (commencing from 11.9.2009) =Rs. 14665.00
ii. Penal interest from 10.06.2009 till 11.06.2009 @ 2% =Rs. 2855.50
iii. Renewal fee =Rs. 551.50
iv. Total =Rs. 18072.00
4. Again I was asked to pay interest in advance and that too at a higher rate alongwith penal rate and renewal fee. Upon my protest against this arbitrary and unfair banking practice, I was clearly told by Shri Pankaj Tripathi that now as the Bank had the Gold it would dictate the terms it liked and that I had no option but to pay or lose my Gold.
5. Yet another strange aspect of banking I was subjected to in HDFC was that I was refused anything in writing even upon my written request. I had requested that I may kindly be advised the interest and charges asked for in writing but I was refused any thing in writing. My written request was not even receipted. I was told to write to Head Office in case I wanted to make any written request.
6. I am bringing the matter to your kind notice for your kind intervention and necessary action. I am also requesting that the said loan may kindly be renewed and that:
i. The interest to be paid should not be more than 15.25%
ii. This interest should be payable at the time of repayment of the loan
iii. In case I am asked to pay the interest in advance then I should be given the benefit of discount so that the actual interest rate is kept at 15.25%
iv. I be refunded the excess amount paid by me by way of advance interest.
v. I wish to inform you that paying / charging interest in advance makes the actual interest rate 16.75, which amounts to misrepresentation, illegal banking practice and fraud.
vi. As committed there should be no renewal fee.
vii. There should be no penal interest as the renewal of loan should be with effect from the last due date i.e. 9.5.2009
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