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Thread: Home loan preclosure penalty charges

  1. #1
    vasudevabv is offline Junior Member
    Join Date
    Oct 2011
    Posts
    1

    Default Home loan preclosure penalty charges

    Name:  Citibank.jpg
Views: 1556
Size:  8.7 KB
    Hi,

    I have a Housing Loan from Citibank, Bangalore. I wish to foreclose my loan and I asked CITIBANK for the processs to do so. I got the details with a 2% penatly on the outstanding amount. I called back once i came to know about the recent RBI notification to banks to wave-off these charges and was told that they have not received any notification from RBI on the same and hence they are continuing to charge customers for preclosure.

    I saw various articles on the INternet where there is mention of this notification and Inspite of this the bank says that they have not received any circular from their senior management and hence they will have to charge the 2% foreclosure charges.

    Anyone who can guide me the next steps to handle this issue with CITIBANK please? or point me to the right material/contact to get the correct details from RBI.

    I intend to close it very quickly and hence appreicate a quick response from the members here.

    Regards
    Vasudeva

  2. #2
    Unregistered Guest

    Default Kotak Home Finance complaint

    Dear Mr.Vasudeva,

    Even i am facing the same problem with Kotak Home Finance complaint. They are replying they have not got any intimation from RBI regarding this. At one side, the RBI is increasing interest rate by more than 3%, and its not implementing the rules properly, making the genuine customers who are willing to pay the loan properly suffer.

    If have got any solution to this problem, please let me know. My contacts, Rajesh - 09283701460 and email: crs.rajesh@gmail.com

    Quote Originally Posted by vasudevabv View Post
    Hi,

    I have a Housing Loan from Citibank, Bangalore. I wish to foreclose my loan and I asked CITIBANK for the processs to do so. I got the details with a 2% penatly on the outstanding amount. I called back once i came to know about the recent RBI notification to banks to wave-off these charges and was told that they have not received any notification from RBI on the same and hence they are continuing to charge customers for preclosure.

    I saw various articles on the INternet where there is mention of this notification and Inspite of this the bank says that they have not received any circular from their senior management and hence they will have to charge the 2% foreclosure charges.

    Anyone who can guide me the next steps to handle this issue with CITIBANK please? or point me to the right material/contact to get the correct details from RBI.

    I intend to close it very quickly and hence appreicate a quick response from the members here.

    Regards
    Vasudeva

  3. #3
    Unregistered Guest

    Default Home loan preclosure penalty charges

    I have citibank home loan @ fixed rate interest. I called up Citi bank to check the pre closure procedure after I heard recent announcement of RBI that SBI & ICICI bank has announced that they will not charge any penalty on pre-closure of home loan. I understand from Citi bank that RBI circular is only meant for NHB (HFC) & not for regular banks. But I understand from an article that RBI has asked bank not to charge penalty. It is very diffcult to understand who is right & why RBI & govt. is not issuing clear instruction. After RBI announcement it has been 1 month passed yet many thing are not clear. If some one has clear idea about this issue & know right authority ontact details to approach, pls advise me. Harish Shah - shah_harish23@rediffmail.com

  4. #4
    Anupam.platinum Guest

    Exclamation Pre Payment charges by Federal Bank (India)

    Yes,
    I also fully agree with this as I am also suffering for same complaint. I had been following up with Federal Bank from so many months but everytime they say "we have not yet received any notification by higher authorities to waive off pre payment charges for Home Loan". Could anyone please suggest what can be done in this regard, as I have to pay 2% pre payment charges still for my part payments.
    Appreciate your guidance at my email id: anupam.platinum@gmail.com.

    Thanks,
    Anupam Sharma

    Quote Originally Posted by Unregistered View Post
    Dear Mr.Vasudeva,

    Even i am facing the same problem with Kotak Home Finance complaint. They are replying they have not got any intimation from RBI regarding this. At one side, the RBI is increasing interest rate by more than 3%, and its not implementing the rules properly, making the genuine customers who are willing to pay the loan properly suffer.

    If have got any solution to this problem, please let me know. My contacts, Rajesh - 09283701460 and email: crs.rajesh@gmail.com

  5. #5
    Unregistered Guest

    Default ING VYSA charges too much penalties.

    ING VYSYA is very dangerous bank. It takes EMIs but they are not reflectign in the accounts. For that also they are charges penalties, late payment charges, and screw credit history. ING Vysya bank loots the customers. Avoid any transactions with them. Better to to different banks rather than ING VYSA.

  6. #6
    shakeel memon is offline Junior Member
    Join Date
    Jan 2012
    Posts
    2

    Exclamation

    i have an existing loan from ing vysya loan account no.: 5500HL527624. the bank want to levy 3% pre-closure charges. bank like icici have waved out their pre-closure. this makes me assume that if icici can wave out these charges so can any other bank and this also could mean that the circular by NHB is put in practise by these banks. then why would ing vysya charge these charges and that too "3%". i have just closed 1 loan with icici and smooth experience. is there an authority to give people like me a solution against these bank??????? desperately seeking help !!!!!!
    Shakeel Memon
    9820093378

  7. #7
    sudarshangund is offline Junior Member
    Join Date
    Feb 2012
    Posts
    1

    Default

    Quote Originally Posted by vasudevabv View Post
    Hi,

    I have a Housing Loan from Citibank, Bangalore. I wish to foreclose my loan and I asked CITIBANK for the processs to do so. I got the details with a 2% penatly on the outstanding amount. I called back once i came to know about the recent RBI notification to banks to wave-off these charges and was told that they have not received any notification from RBI on the same and hence they are continuing to charge customers for preclosure.

    I saw various articles on the INternet where there is mention of this notification and Inspite of this the bank says that they have not received any circular from their senior management and hence they will have to charge the 2% foreclosure charges.

    Anyone who can guide me the next steps to handle this issue with CITIBANK please? or point me to the right material/contact to get the correct details from RBI.

    I intend to close it very quickly and hence appreicate a quick response from the members here.

    Regards
    Vasudeva
    I also had citibank loan which I had to preclose but they charged 2% interest rate. when asked about rbi guidelines they are saying they did not recieve any notification and their management is discussing this.
    Have you got any remedy for your situation?

    Thanks,
    Sudarshan

  8. #8
    Daniel Massey Guest

    Default Home Loan preclosure...

    Guys,

    Iím facing the same problem, I have my Home Loan account in Citibank and trust me they are day robbers, When i called and asked abt the RBI's notification they gave me the same story of RBI havenít provided the data from when this law will be implemented, When I asked to put me to their manager I was put on hold for 15 to 20 min and the same person picked the call and told that all the managers are busy and canít take the call now, Worst customer services i have ever seen in my life...

    We have all these laws for name sake and just as eyewash... Why is our system so bad? We are only speaking of other developed countries, but we canít grow till our system is corrected.

    Cheers
    Danny

    Quote Originally Posted by vasudevabv View Post
    Name:  Citibank.jpg
Views: 1556
Size:  8.7 KB
    Hi,

    I have a Housing Loan from Citibank, Bangalore. I wish to foreclose my loan and I asked CITIBANK for the processs to do so. I got the details with a 2% penatly on the outstanding amount. I called back once i came to know about the recent RBI notification to banks to wave-off these charges and was told that they have not received any notification from RBI on the same and hence they are continuing to charge customers for preclosure.

    I saw various articles on the INternet where there is mention of this notification and Inspite of this the bank says that they have not received any circular from their senior management and hence they will have to charge the 2% foreclosure charges.

    Anyone who can guide me the next steps to handle this issue with CITIBANK please? or point me to the right material/contact to get the correct details from RBI.

    I intend to close it very quickly and hence appreicate a quick response from the members here.

    Regards
    Vasudeva

  9. #9
    Mahesh Kumar V Guest

    Default Home Loan Pre-closure with Citi bank

    Dear Sir,

    I have taken a home loan from Citi Bank in 2005 (Loan Number - 318294) and now I am planning to foreclose my home loan. I initiated the request with the bank and asked the bank to start the process to do so. Bu t I got to know from the bank that the bank will charge 2% of the outstanding loan amount as the pre-closure penalty.
    But recently there was a communication published in the news paper that no banks should charge any penalty for the pre-closure. Can someone please guide me the next steps to handle this issue with CITIBANK please? or point me to the right material/contact to get the correct details from RBI

    Thanks & Regards
    Mahesh Kumar V

  10. #10
    RAKESH THAMPI Guest

    Default Home loan citi bank

    I have a Home loan account with citi bank & would lik eto make the pre payment but they have sent the forclosure letter with 2% charges

    How disgusting is CITI Bank . This is the second time they are doindg this . RBI rule has been imposed & clearly all the paper & news says no pre payment charges but still they have sent a for closure letter with the charges

    Who can help us Please call me or mail to me ......

    My No is 09923108147

    Email is rakesh.thampi@lge.com

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