Dear Sir,
My name is Amit Agarwal, Upon request of one marketing person of BHW Home Finance Ltd. (Erstwhile Birla Home Finance) now known as Deutsche Postbank Home Finance Ltd, I had taken Home LOan for Rs.15 lacs for a flat, and amortised Rs. 10.72 lacs@ 9.99% in April,2008, but surprisingly within 5 months they have increased rate from 9.99% to 11.49%, and when every banks reduced rates they after long time reduced in two part @ 0.50% , now my loan rate is 10.49%, when I compared all the REpo rates / any benchmark rates from that time to current time all the rates are much below , but my Loan interest rate is still higher then the actual, now the same company is giving loan @ 9% whereas I am paying 10.49%, when I asked them to reduce the rates, they asked me to convert the old loan to new system by paying 2%, I then approached advocate and give them legal notice, on the basis that when rate increased they immediately pass on the same to existing customer but not passed the benefit to existing customer by giving reason that their old borrowing rate is higher. My contention is that if you pass the high cost to existing customer completely why are you not passing the benefit completely. Now, I want to switch over the loan to some PSU Banks, but they are asking to pay pre payment / take over penalty of 2% of loan amount (given in LOan documents), now I want to know that can I appeal against such mal practice or file a case in Court or any complaining authority such as RBI or any governing agaency and what is the probability to get success against them, because lots of people are suffering from such bad practice.
Awaiting for your reply and suggetion.
Regards,
Amit Agarwal