The management of this Bank is acting as shameless crooks because they have increased my interest rate one more time to 9.8% wef 01-01-2007. Their modus operandi is as follows:
They lure the hapless customer by pricing their variable rate about 75-100 bps lower than the fixed rate. They would give a further "discount" of about 25-50 bps if you work for certain chosen companies.
They would never ever provide the Loan Agreement before they have taken the possession of property documents from the customer after the loan disbursal.
Their Sales agent inform the customer that Part pre-payment would attract heavy penalties if they chose Fixed interest rate, thus influencing him to go for variable interest rate.
At the time of loan-disbursal, interest-rate review cycle is kept at 6-months.
Within 1-2 months of disbursal, they inform the customer that his interest-rate review cycle would now be 3-months.
Immediately afterwards, they would start upward revision of the interest rate every quarter or two, always by a minimum of 50bps.
Their objective is very clever: they don’t want to retain the customers for 15-20 years. They will force him to foreclose the loan within 3-4 years by repeated onslaught of upward interest rate revision. Their strategy is to acquire newer hapless customers at the cost of throwing old customers after milking them dry.
At the same time, they have made part prepayment and Foreclosure a highly expensive and autocratic exercise. Although they have taken care not to send a written communication to the customer, their call centre executives inform over phone that wef 01.01.2007 part prepayment would attract a penalty of 2.5% on the entire amount paid in a Calendar year if the payment is more than 25% of the loan disbursed. Having cornered the customer, they keep on increasing his interest rate and do not allow him to exit easily.
This Bank is like a parasite which grows by sucking the blood of its customers. Due to all such reasons, I am least interested in continuing relationship with a Bank which is hell-bent on creating hardships on its customers. Hence, I have already paid Rs.530, 000 in Dec. 2006 and wish to pay the balance amount of approx. Rs.7 lakhs in the next 6-7 months. I have already applied to them for increasing the amount of my EMI so that I can repay the balance amount in next 7 months