Loan against property no. 48256048 sanctioned in August 2010 at the interest rate of 11.5 % .
Between August 2010 and December 2011 ( 17 months ) interest rates hikes 4 times taking the interest rate
to almost 15 % . On my request to prepay ,the bank wants to impose a prepayment penalty of 4.44 %.

On checking the sanction letter I find that all the papers have my innumerable signatures including the
sanction letter .Except that the sheet containing terms and conditions which was sent to me by the bank
on my refusal to pay prepayment charge does not bear any signatures .The term sheet mentions about 4%

So while the Bank is very careful in taking our multiple signatures on every piece of paper ,
how the hell they left this term sheet.It is very clear that this sheet was not shown to me at the time of sanction
This amounts to unfair trade practice.

Further this LAP was first sanctioned as HOME SAVER .Then just after six months I received a letter from the Bank that
I need to pay an annual charge amounting to 1% .I refused for that and then my Home Saver was converted to normal LAP.

Is there any LAW for these foreign banks in our country .Or they will continue to fleece unsuspecting customers like this.

As such also the RBI guide line is very clear that on FLOATING INTEREST LOANS ,the bank is logically and morally not authorized to charge any prepayment charges since the entire market risk is shifted to the customer by frequently changing the interest rates .
Why RBI does not make it MANDATORY.

Or is RBI in consonance with them.I have put my complaint on RBI OMBUDSMAN ( comp. no.201112014004571) site also and waiting for their response.


SURESH PATHAK 9311109777