Dear Mr. Appala Pranesh Rao,
Reaching out to you for an appropriate closure to the issue raised below.
Summary: I have availed a personal Loan from HDFC bank with Loan Account Number: 45681781.
Total Loan taken – Rs.1875000/-
Current Principle outstanding - Rs.1579230/-
Foreclosure charge Levied - Rs. 74590/- (@4.72%)
Basis the attached welcome mailer that I received from HDFC (Dated 4th March 2017) I was with the understanding that there would be no foreclosure charge levied if I closed the loan after completing 12 EMIs.
Basis which I have opted to transfer the loan account to a competitor who has offered me a lower interest rate.
During my visit to the HDFC Bank loans Branch in Sahakar Nagar, I was told a foreclosure charge would be levied at 4.72% of the principle outstanding which is an extremely high amount.
Besides the definition of Own Source is something I understand now. I do not recollect this being explained to me by the sales Executive who pitched for the loan / the verifiers who spoke to me over phone / the HDFC personnel who visited me at my office at the time of loan approval.
Even the images shared by the grievance redressal team of HDFC only states that normal Foreclosure charges will apply. However there is not clarity given to me as a customer on how much it would be. (It is being levied at 4.72% as per the statement given by the branch, however the mail below states it is 4%.
Also it is my understanding that the RBI has issued a directive to all Scheduled Commercial Banks dated 7th May 2014 – “It was indicated that in the interest of their consumers, banks should consider allowing their borrowers the possibility of prepaying floating rate term loans without any penalty. Accordingly, it is advised that banks will not be permitted to charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect.”
Attaching all referred documents for your perusal. Please provide an acceptable solution and oblige.
As it is completely unethical of HDFC to do something like this, Im also parallelly taking this up with National Consumer Forum and Banking Ombudsman keeping in loop my customers such as myself through Social media.
Regards,
Srinivas S