In November'10 ,HDFC bank had sanctioned and disbursed housing loan. We were told that the interest rate will be fixed at 8.5% for the first year and will be variable from the second year.

However on the 05/04/11, received a letter from HDFC stating that the interest rate has been increased from 8.5% to 9.25% w.e.f 01/04/11.

Was suprised to know that the interest rate has been increased in 3 months and so had called the bank to find the reason for increase.

I was totally zapped when I was told that rate change is applicable from the next financial year i.e 01/04/11.

If the interest rate was to change 01/04/11 then the same could have been clearly communicated to us that interest will be variable effective 01/04/11.

Financial year is not 31/03 for all companies hence how are we supposed to know that interest will change from 01/04/11.

We have clearly been cheated by the bank and would like to lodge a complain with consumer court.

Regards

Shaibu John
Loan A/c # 600694065

I took a home loan from SBI in October 2005, at 7.5 % fixed interest rate for 15 years. I was told that I would be paying some 7.5 lakhs in excess of the principle over the 15 year tenure. I have been paying the EMI of some 14,200 regularly ever since. I used to view the account online but did not do so during the last few months. When I saw the accounts online a few days, I saw that SBI has increased the interest rate to 12.75%. More than 11,60,000 has still to be paid. They have not informed me of this increase. Of the 14,200 that I am paying, more than 11,000 goes now towards the interest. When I contacted the SBI Home Loan division at Palarivattom, Kochi, what they said is that they had to increase the interest in 2008 but this was not done and so now, I have to pay the arrears, and every day I will have to pay some 360 rupees extra. They were not willing to accept their failure to increase the interest rate and correspondingly the EMI, and to inform me on time of the developments, as their mistake. What should I do now (and I am in Kuwait)?