Consumer Redressal

1. We had availed home loan from HDFC, MG Road branch in July 2009 under FLOATING RATE of interest. We were told by the HDFC executive that the interest rate will vary based on the changes directed by RBI. HDFC is charging an exorbitant 12.25 per cent p.a. today which is much above the market rate of 10.50 per cent charged by other banks. The charged rate of interest has always been much higher than the lending rates offered by RBI consistently for the last three year. This is nothing but a white collar robbery as the ultimate objective of taking a floating rate of interest gets utterly defeated. 2. HDFC is now suggesting paying Rs. 21184=00 upfront to lower the rate of interest to 10.5% from 12.25%. Charging this conversion fee is totally unethical and cheating existing customers as the loan taken is on FLOATING RATE of interest. The entire concept of RPLR is unjust and a way to cheat existing home loan customers. How can HDFC charge any such fees to lower my rate of interest when I have opted for Floating rate loan. Secondly, we have been paying higher rate of interest for so many years to HDFC therefore these conversions should automatically happen. When the interest rates were reduced the same was not adjusted downwards proportionately and promptly as they have shown promptness in adjusting the same upwards now. My home loan interest has always been well above the market rate of interest which is totally unacceptable. As per RBI, Flexible rate of interest has to be adjusted to current market rate (whether upward or downward). I see HDFC following the RBI guideline only for upward movement of the interest rate change. This is highly unethical. Please help how to take this battele forward for so many home loan lenders.