Originally Posted by abajaj

Hello,

I have a home loan account with Kotak Mahindra Bank since Dec 2008. I am trying to foreclose it using self funds. The bank is asking me to pay 2.21% prepayment charges not only on the outstanding amount but also on the prepayment amount done in the last 12 months. I hear RBI has sent out a circular to drop the foreclosure charges with immediate effect. But the Bank's customer representative (after being contacted so many times) are telling they havent received the circular yet and that I will still have to pay the 2.21% charges.

Could someone please help me to save my hard earned money on prepayment charges?

Thanks,
Aarti

Dear Ms Aarti,

At the outset we apologize for the inconvenience caused to you.

As per the recent Press release issued by the Reserve Bank of India dated September 6, 2011 mentioning that Banks must not recover pre-payment charges in floating rate loans, this point was one of the recommendations made at the Annual Conference of Banking Ombudsmen held in the Reserve Bank of India, at Mumbai on September 5, 2011. Please note that this point is not an instruction or directive by the Reserve Bank of India to Banks.

Please write to solutions.bank@kotak.com with your home loan account and contact details. We will have a representative contact you and assist you with your concerns.

Regards, Kotak Support Team

Hello Sir/Madam,

Thank you for reverting to my concern. Glad that my concern has finally been noticed by someone.

I have called Kotak Customer Care support some 15 days back requesting to waive off the foreclosure charges for my home loan account because I am using self fund to pay it off. I was told that my request will be forwarded to senior authorities and I will receive a reply within next 4-5 working days. I have never got any reply so far. I am out of India as of now and cannot make it to the branch office personally to talk about this. I have been communicating to the customer care representative in Pune over the email to which I haven't recieved any reply yet.

About the foreclosure charges: Even if it is not a directive from RBI as per your indications, many other banks have waived off the foreclosure charges atleast for self funds. I have always been prompt in the EMI payments, never defaulted. I have been promptly updating my whereabouts to make it easy to the bank to keep track of.

I have noticed that Banks have always been compromising with those who are defaulters and asking additional charges for the prompt customers. I would think Kotak should also follow other banks and set a good example by waiving off the charges for someone who has been promptly paying off her loans.

Please help.

Thanks,
Aarti

Originally Posted by abajaj

Hello Sir/Madam,

Thank you for reverting to my concern. Glad that my concern has finally been noticed by someone.

I have called Kotak Customer Care support some 15 days back requesting to waive off the foreclosure charges for my home loan account because I am using self fund to pay it off. I was told that my request will be forwarded to senior authorities and I will receive a reply within next 4-5 working days. I have never got any reply so far. I am out of India as of now and cannot make it to the branch office personally to talk about this. I have been communicating to the customer care representative in Pune over the email to which I haven't recieved any reply yet.

About the foreclosure charges: Even if it is not a directive from RBI as per your indications, many other banks have waived off the foreclosure charges atleast for self funds. I have always been prompt in the EMI payments, never defaulted. I have been promptly updating my whereabouts to make it easy to the bank to keep track of.

I have noticed that Banks have always been compromising with those who are defaulters and asking additional charges for the prompt customers. I would think Kotak should also follow other banks and set a good example by waiving off the charges for someone who has been promptly paying off her loans.

Please help.

Thanks,
Aarti

Dear Aarti,

We assure you that your issue will be taken care of. However, we would require your details to take this matter further. Therefore, we request you to write to solutions.bank@kotak.com with your home loan account and contact number.

Regards, Kotak Support Team

I am also in the same position. I am trying reach higher authority to put my case. I think this shouldn't be problem for this bank as they already charging higher interest rate. Have you got any luck?

Regards,
Ilango

Hello Sir,

Even after pursuing so much, looks like this bank doesnt care about its customers. I am still being asked to pay 2.21% on the outstanding amount. The final foreclosure request form that was given to me by the bank official, didnt have the charges on the prepaid amoutn in the last 1 year applied to the totals. Now that my father has gone to Kotak's Pune branch, the charges have now been added. The original loan documents have indications that the charges will be applied on the last 6 months prepaid amount. Why am I being over charged for 12 months? It makes no sense. This is toally unfair, you should atleast abide by what the original loan documents are indicating.

Please help.

Thanks,
Aarti

Originally Posted by illangoarun

I am also in the same position. I am trying reach higher authority to put my case. I think this shouldn't be problem for this bank as they already charging higher interest rate. Have you got any luck?

Regards,
Ilango

Hello Ilango,

After struggling for liek past 2 months, I have finally paid the extra charges today. Not only on the principal amount, but also on the prepayment amount for the last 12 months. This is totally insane. Can you tell me how are you reaching to the higher officials? I would like to take this matter ahead. Dont want to spend my hard earned money on unfair rules of this bank.

Thanks,
Aarti

Originally Posted by abajaj

Hello Sir,

Even after pursuing so much, looks like this bank doesnt care about its customers. I am still being asked to pay 2.21% on the outstanding amount. The final foreclosure request form that was given to me by the bank official, didnt have the charges on the prepaid amoutn in the last 1 year applied to the totals. Now that my father has gone to Kotak's Pune branch, the charges have now been added. The original loan documents have indications that the charges will be applied on the last 6 months prepaid amount. Why am I being over charged for 12 months? It makes no sense. This is toally unfair, you should atleast abide by what the original loan documents are indicating.

Please help.

Thanks,
Aarti

Dear Aarti,

At the outset please accept our sincere gratitude for the time taken and effort made by you in sharing your concerns with us.

We have taken a note of your concerns, our bank officials are looking into the same and will reply to you shortly.

Further, we request you to write to us at solutions.bank@kotal.com for further assistance.


Assuring you of our best services at all times.

Regards
Kotak Support Team

This is to bring to your notice that the 2 copied of the loan agreements have different conditions. The bank copy which was scanned and sent to me by the Bank official on my request now says I will have to pay prepayment charges on past 12 months' prepaid amount. The customer copy which I have has the condition that I would be required to pay pre-payment charges only on the last 6 months prepaid amount. The 6 months clause was written in my copy in front of me. Unfortunately it is not counter signed by the bank official who co-ordinated loan documents. The bank officials have got a good excuse not to accept it. IN fact they have said I did it myself. If one sees the document, it is obvious that it is written in the same ink that the rest of the agreement filled in by the Bank personnel. I am shocked at the kind of cheating this is.

Can someone help me?

Thanks,
Aarti

Originally Posted by Kotak Support

Dear Aarti,

At the outset please accept our sincere gratitude for the time taken and effort made by you in sharing your concerns with us.

We have taken a note of your concerns, our bank officials are looking into the same and will reply to you shortly.

Further, we request you to write to us at solutions.bank@kotal.com for further assistance.


Assuring you of our best services at all times.

Regards
Kotak Support Team

Originally Posted by abajaj

This is to bring to your notice that the 2 copied of the loan agreements have different conditions. The bank copy which was scanned and sent to me by the Bank official on my request now says I will have to pay prepayment charges on past 12 months' prepaid amount. The customer copy which I have has the condition that I would be required to pay pre-payment charges only on the last 6 months prepaid amount. The 6 months clause was written in my copy in front of me. Unfortunately it is not counter signed by the bank official who co-ordinated loan documents. The bank officials have got a good excuse not to accept it. IN fact they have said I did it myself. If one sees the document, it is obvious that it is written in the same ink that the rest of the agreement filled in by the Bank personnel. I am shocked at the kind of cheating this is.

Can someone help me?

Thanks,
Aarti

Dear Ms. Aarti,

At the outset please accept our sincere gratitude for the time taken and effort made by you in sharing your concerns with us.

We have taken a note of your concerns and our bank representative will reply to you shortly. Please feel free to write to us at solutions.bank@kotak.com for further assistance.

Assuring you of our best services at all times.

Regards,

Kotak Support Team