Dear Team,

I have availed Home Loan from DHFL in the year 2007 @ 12 % on floating rate of Interest.

After this they had increased rate of interest in following manner:-

Date ROI %
01/04/2009 12.75
01/02/2009 13.00
01/09/2008 13.25
01/07/2008 12.50
08/06/2007 12.00

When I had availed loan my understanding was that if rate of interest comes down then the subsequent effect will be given to my account. But it does not seems to have happened. In other case they are offering new loan at lesser rate of interest. Then what is the use of my taking loan at lesser rate of interest. When I have written them they have given me below mentioned reply:-

Dear Mr. Desai,

This is with reference to your home loan account no. 860 with Dewan Housng Finance Ltd.

At the outset, please accept our sincere apologies for the delay in responding to your query.

We wish to mention that you have availed a Home Loan under the scheme of floating rate where in the reset of the interest rate happens based on financial market conditions. We further wish to mention that your Home Loan is linked to the retail prime lending rate of DHFL. Hence, as per article 2.2 in the terms of the loan agreement executed by you, whenever there is an increase or decrease in the retail prime lending rate basis the changes in the financial market conditions, the rate of interest applicable in your Home Loan account varies accordingly. We would also like to explain that the funds borrowed by us in the year at the time of lending to you are DIFFERENT than the funds available in the market as on date. We can not extend the concessions available now, to the loan availed by you few years back.

We are currently unable to consider your request for reducing your rate of interest to less than 10.00% without any charges as per company policy. If you wish to opt for current floating rate you are required to pay fee of @ 2% of the principal outstanding balance.