Thread by @Kaalateetham

Normally nobody likes to talk about their home loans; they are personal.

Decided to talk about ours. Those taking home loans need to be very careful with banks as they overcharge you while you go on with your life.

In our case @syndicatebank & @canarabank are the culprit banks.

Ours is a high value home loan by any normal Indian standards. @syndicatebank treated it like one when we were given the home construction loan through their Syndnivas scheme.

It was sanctioned in 2015 at 10.5% floating rate of interest. In time @RBI reduced interest rates

By the time we actually used the loan rates had come down to 9.5%, so far so good. However, once the money was availed surprisingly the rate got fixed & never came down!

On our part we shifted out of TN to Bangalore in mid 2017 & requested the bank to shift our loan to Bluru too

Our continued requests to shift loan to Bangalore failed because for the home branch this is a high value asset. Earning lot of interest (we have paid more than a crore till now as repayment) to let it go was unacceptable - let customer be damned was @canarabank approach to us !!

In September 2020 due to Covid induced thrifty lifestyle we had some excess amount with us. We decided to prepay some portion of the loan.

Before prepayment, we asked statements & then we saw how the bank had defrauded us by not lowering interest rate in our home loan account.

We had signed for floating rate but the rate was fixed at 9.5% till August 2020. It was reduced to 9.1% as a favour to us after we complained.

After repeated requests to charge us interest like others failed, i held back payments (we had done the prepayment part already)

Bank Manager called, they said it will become NPA please pay, we complied on his assurance that he will reverse all additional collected amount from us & adjust it to principal.

Well it never happened. @canarabank which was advertising 6.9% rate of interest was charging me 9.1%

In February they reduced the rate to 7.4%

They blamed us for not reaching out & requesting them to reduce interest rate when Bank reduced it to new customers. I said it is not my job & told them clearly they are looting people like me & I will take it up at right forums.

To date @canarabank has continued to loot.

I have raised this issue with their grievance redressal officer with no response. I will be raising it next with banking ombudsman & eventually taking them to court.

Yes, they have not transferred the loan to Bangalore even now !!!

Who will punish these banks who overcharge us & get away defrauding customers ?

Can @RBI rein them in?

These guys threaten me with bad credit rating if I do not pay. That is one weapon they have against us.

We now need a rating of banks with respect to customer experience.

In my opinion branches involved in defrauding customers should be shut down by @RBI & the bank penalised heavily.

Banks which do not have mechanisms for oversight should be closed permanently. It should not matter if they are Pvt or Govt owned.

What about ppl who cannot fight?