I had taken a Mortgage Loan from ING Vysya Bank Ltd. in March 2007, My loan a/c No. is 2160HL434966.
I have decided to make a Part Prepayment towards my loan and have approached the concerned officer who has informed me that as per their latest rules only 25% of principle outstanding can be repaid in a financial year. I have a copy of the Sanction letter issued to me wherein there is no upper limit for Prepayment, the clause clearly states that I can prepay upto a max of 2 times in a span of 12 months and the minimum sum for prepayment is Rs.25000/-. It also adds very clearly " Pre Payment Penalty is NIL".

Inspite of being shown the sanction letter the bank official claims that the rules have been changed and as per new rules all prepayments above 25% will attract PrePayment of 3%. I do not understand how banks can change rules to increase their profitabilty and compel customers to continue paying high interest on loans. Whie I had taken the loan the rate of interest in the Sanction letter is 12% but with floating rate of interest being applicable to my loan the current rate applicable on my loan is 15%. I had originally planned this as a 120 month loan but with the change in interest rates it does not seem possible that I will be able to repay the loan even in 200 months. This has compelled me to dispose some assets and make a bulk Prepayment towards my loan, but here too the bankers want to rob me by Levying charges which are not existent in the original deal. They claim that at the time of disbursement I have signed papers in which one of clauses was that the banks were free to change the norms. My contention here is can changes made against the spirit of the original sanction letter be held against me. What is the remedy for my problem? Though I wish to pay my loans the bank seems more interested to fleece me than take back their money.