I took a home loan with HDFC bank Adyar Branch (Chennai) in June 2003. It was a floating rate loan at 8%. What these people did in Dec 2004, is that they raised the interest rate to 8.5% and increased my tenure from 180 months to 192 months without even sending a notice to me. This at a time when they are marketing the interest rate of 7.25% for new customers. I sent an email to them and till 6 days they did not respond to the email. That is the seriousness these people have. Finally I had to write a stinker and I got a response yesterday. I spoke to them today and they said that this has to do with interest rate fluctuations. I am fine with all these. But why can’t they notify the customer.
So be wary when you sign up for a loan with HDFC. For all you know, you may be enticed with a 7.25% loan. But 3 months later could be saddled with 8.5% and they would say that it is because that is the prevailing rate.
I plan to move out of this bank. To be honest, I think the public sector banks have begun to provide better service than all these so call private, technologically superior banks.