Beware of Standard chartered Bank They are here to cheat you.
This incident started one year back, Many franchise of scb came regularly offering personal loan, I did entertain them , at one point one year back I thought of going for it since I needed it, when SCB approched we discussed and I was told 11% interest per annum, and there is no preclosure charges involved after six months.
I applied for the loan, they refused to take the cheques whcih I gave them , and then they made me to pay By ECS clearing then I recd the loan cheque through courier, got shocked to know I was paid only 97K for a 1 lac loan, saying the balance is processing charges, and as per the emi dedections and dimnishing interest works out to be aorund 16% , last June - July.
I got a leagal notice saying my EMI is pending, when I approched my bankers they said SCB had given a wrong details so the payments had been rejected , when I informed their leagal department of this ultimately the payments go through and things were going fine till this month, again I got telegram from their leagal department saying that My EMI is due, when I checked with my banker it was found due to a shortage of RS 60/- the EMI was not cleared,
so I called SCB to know if I can change the ECS clearing bank this is when I got the second shock. The lady said I have to pay all the dues balance then I can transfer it, when I asked for the dues, she said the months EMI, + 522/- for ECS default (which was SCB’s), + 520/- for change of account (ECS clearing).
when I opted for a pre closure the terms are as follow.
I cant close it immediatly, I have to give one month notice.
I have to pay the next EMI
I have to pay 3% for pre closure
I will be getting a quotation from Chennai.
Then I have to go the the SCB concerned branch sign all docs and then Close
Note: They cant accept anyother form other than physical presence in their office.
For a loan of 97K the amounts I have paid extra other than the interest of 16% they charge are as follows 1100 loan processing fee before applying for the loan. 3000 (whcih is have taken a liberty to dedect from the loan cheque) 1050 for ECS probs 2400 for preclosure so this is how this has worked for me,
I paid 3800/- every month for the past 12 months and a preprocessing fee of 1100, and my due as on date is 84000, for a loan of 97000, which includes the preclosure charges.
As of now If I have paid 46700 and still I have to pay 84000 so total of 130700 for a loan of 97000, which works out to be more than the PAN BROKERS Interest rate. It now upto u to decide still if u want to go for any loans with SCB.
I still dont understand how RBI tolorates this,
THIS CAN HAPPEN ONLY IN INDIA
Advice: never ever go to SCB again, I am closing my Credit cards also with them