have a home loan with Deutsche Postbank Home Finance Ltd.I want to end the pre-EMI in May,for which I have already given them post dated cheques,which is due to be hit on 01.06.2011. Now I want to start EMI of the loan with effect from June,2011 thru ECS. They say that your ECS will be effected on 10th June 2011 of the Loan amount of June, i.e. they will debit the EMI of the Loan for the period from 01.06.2011 to 30.06.2011 on 10th June,2011. When I asked them that I did not avail the loan for the whole month of June and how can they charge the EMI on 10th which is 20 days before the due date, they replied this is their policy. The do charge the EMI in advance.

My question is to you that how can a lending bank charge the interest before completion of a month ? Normally, all housing finance companies put the ECS in the first week of a month, say 5th or 7th day, for the loan availed of the preceeding month.Interest on loan is always charged after availing it of one month and not in advance.

Could you please throw some light on it ? Is Deutsche Postbank Home Finance Ltd. doing right thing or looting its customers ?

Thanks.

AKM