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Bank home loan ROI


anilnunna

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anilnunna

Reserve Bank

Private bank (Axis bank) has charged me around Rs 15 lacs with in 6 yrs by changing ROI(rate of interest) several times by taking RBI name. Can RTI do help to find any useful info.?

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MANOJ B. PATEL

Dear member, private banks are not covered under RTI Act but you can ask information you want through RBI.

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Prasad GLN

Private Bank's are not covered is correct.

But as an affected party, he can issue Registered notice and seek guidelines for all cases of change in interest rates as a consumer. It is his right.

Perhaps, member might have opted for floating rates, and when installments and agreement is made for floating rates, one can not bring modifications, except hoping for fall of interest rates.

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anilnunna

Yh its floating rate. But banks are looting money based on this chance by opting RBI rates. 180 Emi went up to 225 with in yr. Is it not cheating? Can't take any action? Is RBI knows this ?

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Prasad GLN

When a contract is entered with Banker with certain conditions (Consensus ad idem), you can not go back and make such hue and cry, calling the Bank, cheating clients, when they have helped you in giving you a shelter.

How it amounts to cheating, when you have received more compensation by increase in value of property, and economy in building materials as on date, and increase in income due to inflation.

 

Decide your self, the cost and value of building then, and as on date. The difference is your profit and the profit is due to finance of the Bank. This is a fact whether you acknowledge or appreciate it or not.

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anilnunna

But such gambling being observed in only private banks. They have strong support from RBI who has hidden banking mafia. How many of us can bring such complaint to open media/forums? Thus they are running business. Is in it?

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koteswararaonerella

you cane file RTI with the RBI which is a public authority and find out whether they have given any permission to change ROI during particular period that is from particular year to particular year to private banks, if the RBI confirms the increase of ROI then nothing can be done. if the answer is no then you can file with the banks OMBUDSMAN of your bank.

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anilnunna

Do you know what Axis Bank did with me? After one EMI, immediately changed ROI and yearly 2times changed. 180 EMI s went up to 225??

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jps50

Rates of interest on loans have been deregulated by RBI and each bank is free to charge rate as per market conditions, its liquidity and cost of fund etc. RBI only prescribed broad policy issues. The rate to be charged are decided by Bank's Board. However, each time there is change, bank has to intimate to the borrower. Rate may differ from one borrower to another depending upon credit scoring of each borrower. Rates are linked to BPLR [bench Prime Lending Rate] and Base rate. Normally there is no foul play in such reputed banks, since rates are changed by system from HO and branches have no control over it. You may also check if bank has debited insurance or other charges etc, which may push up number of EMIs. You may also check if instalments are being credited properly specially in case of ECS system of repayment, otherwise system will charge penal interest which will increase number of EMIs.

 

 

Hence you may file a simple representation seeking details of rate of interest charged on your account from time to time and how it has been arrived at. In case if there is error in feeding your details in system at the time of opening loan account, then it can be corrected. For example some banks are giving discount of 0.25/0.50% in interest rate of housing loans to women, but if branch makes error in feeding gender column, then system may charge rates applicable to male borrowers. Hence such errors if any can be corrected with your representation. In case if branch does not reply to your representation in a month, you may scale up to its HO by referring website of the bank.

 

Present housing loan is available at floating rate from 10.15 to 10.25% pa. and may further go down as RBI reduces bank rate or SLR etc, which may add to cheap cost of fund to banks or increases liquidity in system. In that case number of EMIs will get reduced.

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Prasad GLN

Whether it is private sector or Public Sector, member has availed a loan from a Bank.

Agreed to their terms and conditions.

Benefited by price escalation, saved several costs and found a shelter

Now calls them "Cheating" "gambling" "Mafia"

This is made in India.

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if one searches the site

Home Loan Interest Rates | Home Loan Rates India | Housing Loan Interest Rates - Axis Bank

one can see current rate of interest on loan nearly all private bank does these type of things to make huge profits

which only result in these banks hiring big actors/ress for canvasing banks products which in turn attract poster - --------------

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anilnunna

Initially Axis bank showing presently 10.25 ℅ (below 75lacs for salary) but once customer signed they change ROI immediately and frequently. In my case _from 8.75% to scratched up to 11.90% in 2009.with in 3yrs they loot 15 lacs..??!!

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jps50

To enable you to compare rates of interest charged by banks [public sector and private sector] you may file RTI application with RBI seeking following details:

 

"Please provide me rates of interest charged from time to time commencing from ________[here mention date of sanction of your housing loan by bank] to 31-12-2014 by following banksfor housing loan below Rs.75.00 lakhs to a salaried class loanee:

 

1. State Bank of India, 2. Corporation Bank 3. Axix Bank 4. ICICI Bank, 5 HDFC Bank or alternatively HDFC 6. United Bank of India, 7. Indian Bank 8. IDBI Bank 9. Yes Bank 10 Karur Vyasa Bank.

 

In case RBI has no details of private sector banks as above, I request you to suck this information under section 2f of RTI Act by exercising authority under regulatory act."

 

Please refer:

 

Central Govt. application:

http://www.rtiindia.org/forum/blogs/jps50/19-rti-application-central-govt-info.html

https://app.box.com/s/0fti1wo0urndonb8d7x1

 

HOW TO FILE RTI:

http://www.rtiindia.org/forum/blogs/jps50/93-how-make-rti-application-effective.html

https://app.box.com/s/5n8e7xx2l2n48yt7hhy1

 

Bad Request

 

You may address RTI application to:

 

CPIO, RIA Division, Reserve Bank of India, Amar Building, First Floor, Sir P.M.Road, Mumbai – 400 001

 

You can also e-file at:

 

Online RTI:

http://www.rtionline.gov.in/

 

The information will reveal if there is manipulation by the said bank in charging exorbitant rate of interest not commensurate with market forces. In that eventuality, you may file detailed complaint with RBI for enquiry. In addition you can move consumer forum under consumer protection act for refund of amount wrongly charged and compensation for mental agony. RBI can impose penalty also in crores for such acts of the bank. In 2013 RBI had penalised nearly 20 banks in crores for non or improper compliance of KYC norms.

 

In case if rate of interest of Axix Bank are in tune with other banks, then you will get satisfied that RoI is not manipulated.

 

Your efforts will bring benefit to other borrowers all over India, not of this bank only, but other banks which are indulging in unfair trade practice with RoI manipulation. This may take time and efforts and some minor expenses on your part. This portal will be at your assistance on click of mouse as it is in larger public interest and that your substantial amount of Rs.15 lakhs is involved.

 

I repeat my suggestion to in the mean while file/e-file a representation to branch head explaining your issue, as suggested in my earlier post No. 11 on this thread.

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