Dear Sir/Madam,

I had applied for an education loan of Rs 98,000/- from HDFC Bank to pursue a certificate program in management from IIT Bombay in September 2008, which was approved by the bank. The total loan amount of Rs 98,000/- over a re-payment period of 24 months for the program was allocated as follows:

1) Program Fees - Rs 78,000/-
2) Campus Classroom session Fees - Rs 20,000/-.

However, the Demand Draft for the campus classroom session was retured by the institute on account of the DD having crossed the expiry date in April 2009. I duly submitted the original Demand Draft to the HDFC Bank in order to reduce the loan re-payment amount. The details of the DD submitted back to the HDFC Bank is as follows:

1) DD Number : 004077
2) Date of Issue : 23/10/2008
3) Ref Number : 035913005370
4) Payee : THE REGISTRAR IIT BOMBAY (CEP A/C).
5) Bank Branch : HDFC Bank LTD, SAHAKAR NAGAR, PUNE 411009
6) Amount : Rs 20,000/-

However, I was given two options as follows:

1) Reduction of Rs 20,000/- from the principal amount and subsequent reduction of the re-payment duration in months.
2) Re-booking of the loan to adjust the loan amount to Rs 78,000/- to adjust the EMI for this amount and receive the extra Rs 961/- I have been paying to HDFC Bank in the form of a cheque.

I filled the documents necessary for the education loan re-booking at the HDFC Bank and submitted to the manager in charge of this a year ago. However, the documents when forwarded to the concerned department for re-booking discarded my documents for reasons which I was not made aware of. Inspite of repeated follow-ups with the Bank and the concerned "Re-booking department", I have still no clue on why the re-booking was not approved.

Now, I have asked to fill documents to apply for the loan re-booking again, which is subject to the "Re-booking" department for approval. I have been diligently paying an EMI of Rs 4659/- every month without fail for the past 20 months. Since only 4 months of my loan re-payment duration is remaining, I have placed a formal request to the HDFC Bank to reduce the remaining amount of Rs 20,000/- with the DD amount of Rs 20,000/- I returned to the bank a year ago.

Inspite of repeated follow-ups and e-mails to the Bank, I still do not have any clarity if the unused loan amount of Rs 20,000/- will be reduced from the remaining re-payment amount or if the HDFC Bank will return the extra amount of Rs 961/- I already payed for 16 months.

Please suggest me a viable solution as I have been following up with the HDFC Bank on this for the past 1 year. I am disappointed with the service HDFC Bank provides to customers who diligiently pay EMI's and still stand to lose because of the the Banks service.

Vivek Nair.
vivek.b.nair@gmail.com