Hi,

I had applied for a home loan of 45L from LIC HFL which was approved in July. As per the agreement, LIC HFL had agreed to charge a fixed rate of interest (11%) for the first five years with the option of starting full EMI payments from the date of disbursement.

The first disbursement was supposed to be for an amount of 11.83L. However the builder had incorrectly issued a demand notice for 27L which they subsequently tried to change to the correct amount before LIC HFL could issue the loan amount. However, despite this, LIC HFL issued a cheque for 27L. We met with the area manager and while she maintained that they had not received the updated demand notice (of 11.83L), they agreed to cancel the original cheque for 27L and issue a new one.

Now they claim that their computers were non-functional for a period of 4 days. On the 5th day, when the computers were back up, the fixed interest rate had increased to 11.5%. Now they claim that they cannot issue a cheque of 11.83L at 11%. They say that the best that they can do is bring it down to 11.25%.

Having spoken to other senior managers at LIC HFL, I am assured that LIC HFL should and can make an exception to honor the original agreement. However, the area manager in charge of this issue has been trying to close the issue quickly by forcing me and the builder to 'manage somehow' and look at other options like taking the original cheque of 27L.

Any other option would naturally incur losses for me as my intention was to take as little loan as possible and ensure that EMI payments went to reducing the principal amount.

It seems to me that the LICHFL do not want to admit their mistake and are trying their best to 'force' me to let this matter go. There has been no error or oversight on my part and I feel extremely victimized by both LIC HFL and the builder.

I am trying my best to resolve this matter outside of the courts, but would like to know what legal options I have in this matter. I feel that unless I take necessary steps, LIC HFL will not resolve this matter in the appropriate time.

Thanks,
Ramkishan Rajan