We had availed home loan from HDFC, Andheri East Mumbai branch in September.of Rs.3, 600, 000.(Rs. Thirty Six Lacs) on FLOATING RATE of interest.
However, it is shocking to learn that the current rate of interest applicable to me is 11.25 % p.a. which is much above the market rate of interest of 8 % - 8.5 % charged by other banks (SBI – 8 %, Canara bank – 8.25 %, Bank of Maharashtra 8.5%) (copies of evidence enclosed). Even home loan offered to new customers in HDFC is charged at 9.25 %. This is nothing but a white collar robbery as the ultimate objective of taking a floating rate of interest gets utterly defeated.
2. Outcome of personal meeting with the branch manager Ms. Philomena Raisingani
(Andheri East) was shocking, she candidly advised that I can reduce the rate by
0.25 %, however for which the conversion fees would be 0.50 %
3. We draw your kind attention to the fact that at the time of loan sanction / disbursement, during the course of about half-dozen meetings we had with bank's concerned officers, we were not told that “floating / flexible” rate of interest are meant only for upward revisions & not adjusted for downward current market rate of interest.
4. When all leading banks are giving home loan at 8 to 9% HDFC continue to charge a whopping 11.25% and in particular, when we have opted for “flexible” rate.
Flexible rate of interest has to be adjusted to current market rate (whether upward or downward)
5. The marketing gimmick to attract customers are unjust, unfair, unwarranted, misleading, to explain, we were told (mentioned in the loan agreement as well) by very senior & responsible office that about the prepayment charges being 2% of the loan prepaid.
Now, it seems the same has been increased to 3%. In this free regime of Economy, how can anyone stop people to shift other banks on better terms & services.
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