SBI Tells Its Home Loan Customers To Go To Hell

Interesting mail form a customer whose Home Loan transfer case was delayed by 3 months and when he complained there was no one to listen to him—surprisingly not even Chairman Office. State Bank of India which claims to be the bank of today still live in primitive days where the Rule of Babu’s prevailed.

The complainant under question was harassed for 3 months and he is subsequently been trying for last 2 months to reach Chairman Mr. O.P. Bhatt Office. End result no one except the branch against whom complaint is made is constantly harassing him. Also his papers returned after deducting much amount and without returning 2 out of 3 cheques. The cheques got misplaced as per SBI.

The mail which I could get is a recent one and the one which is 10th to 11th mail in series that was addressed to chairman Mr. O. P.Bhatt.

SBI, Large, mammoth Bank and see how they flex their muscles.

Mr. O.P. Bhatt, this is real case which I am following, let’s see how much your office stand to your words related to COMMON MAN.

Here goes the mail--------GOOD MORNING INDIA
(name has not been given to hide the identity. The purpose is to expose the working and high handedness of SBI)
-------------------------------------------------------------------------------------------------
Dear Chairman Sir,

This is the first time I received call from RASMECCC, Ghaziabad, in which he told me to “GO TO HELL”.

In all these 4 months this was first call I got related to my case.

The call started by Officer threatening me “Why I am pursuing my case now when whole thing has been closed?” I told them that no due diligence has been done and my papers have been rejected because of invalid reasons and this is why I am pursuing it.

I gave due respect by saying Good Evening and even requesting him to hear my case out.

The Officer was not at all interested to hear anything and instead starting telling me why he has all the powers to reject it. The Officer told me that I am not customer of SBI and SBI is in no way answerable to me. Also my complaints don’t matter to SBI and no matter what I say- No one would listen to me. I can go to any extent- to Chairman, LHO, or even RTI my case would not be taken forward.

He told me that I am doing character assassination of his employees. To which I told him that I never brought up name of employees first and I have no enmity with them. It is he who brought up the names first. Also as per Officer, complaining against the delay in my case against his branch and concerned authorities is character assassination for him. He was more concerned about the complaint made and 3 months of delay, harassment faced by me was of little concern for him.

The level of threat and yelling increased as he told me that I have no right to make a complaint especially when it has been rejected. At this point I also lost my cool and I told him that I was well aware that you have rejected my case and I never addressed my complaint to you. The mail was sent to Mr. Chairman and he was only cced on it. It is he who is interfering in my zeal to get justice.

At this point he yelled at me and said- You go to RBI Governor, You Go to Barrack Obama, You Go To Hell---and he banged his phone

I have taken the note of threat I received today and the way it was given it was malign, life threatening, and defamatory in nature.

I thought I was dealing with SBI (As per SBI Chairman Mr. O.P. Bhatt – a Bank for the common people) but I didn’t knew it was a Bank which tell customers to Go To Hell.

The discomfort of AGM itself tells who is right and who is wrong.

25% of my processing fee has been deducted from the complete amount based on incomplete and biased assessment. Also my two cheques amounting Rs. 1500 and Rs. 2000 has not been returned. The money and time spent warrants that my case should be heard in a fair manner.

The silence of you all from Mumbai, LHO Delhi tells me that there is no one to hear my case and instead I am making my enemies in RASMECCC, Ghaziabad. My purpose was to get loan and not make enemies.

For last 2 months I am mailing to Chairman office but no one is replying to me. Only Ghaziabad, RASMECCC is corresponding with me against whose branch the complaint has been made. I want to hear the last word from Chairman office regarding my complaint as my complaint was with the Chairman Office for taking final decision or for next steps.

Regards,                                                              

Home Loan Balance transfer Process From Axis Bank To SBI has started

I have finally started my home loan balance transfer process from Axis Bank to State Bank of India. What attracted me towards SBI is the offer they currently have in market. The rate of interest if fixed for first three years and the rate is minimal. On top of that they have option of a MaxGain account which really makes your money earn more than what it normally earns in a fixed deposit or savings account. Though there are many banks like standard chartered, Citibank , hsbc etc. that offer such feature, only difference is that on their overdraft amount they charge more percentage. Additionally rate rise is always high in private sector banks than public.

I personally feel that Axis bank is best choice amongst all private sector banks. I do maintain another home loan from HDFC but Axis bank is way too superior. The customer service of Axis Bank is simply to amazing and it is fun having them as their home loan provider. if they are eager too increase rate they are very quick to decrease it too. But where they fail is offering something innovative like the maxgain in SBI and moderating interest rates. If I would have this product with them, the chances of me switching the account would have been minimum.

Most banks like HDFC, ICICI etc. fail to realize that if they help their customer close their loan soon it will help them only to get new business. Their home loan rate policies and rate increases are so erratic and disturbing that it feels you have become their slave for life. On other end SBI, IDBI etc. banks, mostly public sector, normally don’t act and sound so greedy.

You need to start somewhere in life to make more money and real estate is your best bet. On top of it truth is that it is not possible without taking a home loan. So you need to be diligent about what you buy and from whom you finance it.

In next few posts I will share my experience on home loan and how whole process goes. Till then keep watching this space.                                                              

Gaur Green Vista Indirapuram – Get benefit on Your Home Loan

The Gaursons Prestigious Project - Gaur Green Vista Indirapuram is nearing completion now. As per the company the Possession of the house would be given on 31st December 2009 which is 9th months of this financial year. While I would soon update everyone on construction status but as per my last visit the progress was much in line with the final date.

If you have taken Home Loan for this property than it makes you eligible for claiming the tax deductions right from the start of this financial year. Yes, you can claim deductions in your salary right from the month of April and should not wait till December for Possession. Read this Article
Home Loan - Are You Eligible to Get Benefit
http://www.getrichattitude.com/home-loan-are-you-eligible-to-claim-deduction.html

The Home Loan was distributed by various banks in this project and the prominent ones include ICICI Bank, HDFC, Axis Bank, and PNB Housing Finance.

How much benefit you can get- Lets take Mr. X scenario as this will help you to do your calculations (all figures are approximate ones)
Loan amount- Rs 30 lakhs
Bank- Axis Bank
Rate- 11% (now 10%)
EMI- Rs. 30966 (opted for reduction in tenure than EMI- so EMI is constant)
Principal- Rs. 50,000/year (approx till now)
Interest- Rs. 320000/year (approx till now)
Interest paid till April 2009- Rs. 5 lakh (from October 2007 to April 2009)
Home Loan- In name of Mr. X and his wife Mrs. X
Ownership- 50% each
Eligibility-
1) Self Occupied- 1 lakh in principal, 1.5 lakh in Interest plus 1/5th of total interest paid before possession for next 5 years(to both individually)
So in this case the total benefit (individually) would be
Principal- Rs. 25000
Interest- Rs. 160000 + Rs. 50,000 (1/5th of Interest paid in previous financial year)
- Rs. 210000
But the maximum interest that can be claimed individually is Rs. 150000.
Note- If you in same city than either you have to let go your HRA benefit or show your property as rented.
So in self occupied both Mr. X and his wife stands to gain Rs. 8600 approx. together each month or Rs. 4300 individually. This is 36% of their EMI.
2) Rented- If you show your property for rent in this year than Mr. X stands to gain a lot this year as whole of interest (minus 70% of rent) would be deductible. However from next year the benefit would be less than that of self occupied.
There are many scenarios that related to self-occupied or rented. In case you need any help than you can post your comment at below post.
Home Loan - Are You Eligible to Get Benefit
http://www.getrichattitude.com/home-loan-are-you-eligible-to-claim-deduction.html

I am sure author will help you.                                                              

Expect More Rate Cuts Soon

Government has really come down on Banks especially Private Sector banks for not passing the benefit of rate cut to the customer. While rate has been reduced by 4% by the government, the public sector banks reduced the rates by 2%-2.5% and the private sector banks reduced by around 1.5%. Most of Banks has hiked the rate by large extent last year and then reduced it marginally which has not made much difference in the credit flow.


Government is very serious and wants to remove clogs from the credit freeze lines. According to them the economy would soon go into bad shape until and unless banks reduce the rate. On the other hand with release of inflation data banks hope that government would reduce more rates. This has become a situation where government is looking at banks and banks at government related to reduction in rates. While the government at present is concentrating on elections there is definitely a bit of lack in incentive at their end. On other side senior government bureaucrats are still on the job and want banks to reduce the rate soon. While not much action is expected soon but formation of stable government would definitely be good sign.


The economy situation would not improve soon and banks need to reduce the rates. Discussions are ON at the Private Banks also related to reduction in rates. According to sources private banks are willing to reduce the rates but then there is a host of factors that they need to look before taking any action. The factors can be further reduction in rate by government or a collaborative movement where each banks reduce the rate together. The important thing is that some banks are indeed serious and can take the first step anytime soon. With this there would not be much option with other banks than to fall in line and reduce the rate. Expect this soon and at maximum few months after elections. Everyone is looking at other and this jinx will break soon.

Visit www.mysticmadness.com A Finance and Personal Developement Blog

                                                             

Axis Bank- UTI Bank- Home Loan- Hidden Charges and Frauds

This post is to enlighten people who are about to take home loan for the first time and do not know the intracacies involved in financing.

I had a bitter experience with Axis Bank (formely UTI Bank) but in the process I came to know the nuances involved and how strong reaction/followup can really prevent the dejection on the customer end.

To start with Me and my wife visited a newly launched property in Indirapuram. Axis, HDFC, BoB and ICICI was pre-approved banks. My need was maximum financing of 90%. I was not aware about any charges and hence was curious about knowing from various vendors. All banks except Axis Bank told me that as per RBI Guidelines it would not be possible for them to finance 90% but they can try anywhere above 85% based on profile. Also processing charges was Rs. 5618 and apart from there was absolutely no hidden charges.

An agent from Axis Bank studied my profile and assured me that he would give 90% and Rs. 5618 would be charged as processing charges. I was bit amazed but then with free insurance and other stuff I thought to give Axis Bank a try as they said YES to all my conditions.

2 weeks passed by and one fine day i reeived my sanctioned letter. Two points attracted me to sanction letter. First the max limit approved was about 92% based on my profile (by the way this is the upper cap and not the disbursal amount). Second and most shocking was 1% processing fee which was not told to me earlier. To make the matter worse they encashed my Rs. 5618/- cheque also.

After sanction letter they called me up and told me that they could provide only 89% finance and 1% processing fee is mandatory (which was about 30k in my case).

I took a back seat and said since the retracted on both conditions and hence I am not interested in taking loan. More disheartening was the fact that they had gone back on their commitments and I had no faith left in the bank.

Sensing my hard attitude they asked to agree on 89% and to mention in the sanction letter that Rs. 5618/- would be the charges and I wont pay more than that.

After much persuasion I agreed on 89% and Rs. 5618/-. They made me sign all documents and took all papers.

After a week I got another call and gave me two options

1) Agree on 85% and charges of Rs. 5618/- or
2) Agree on 89% and charges of Rs. 30,000.

I was in trouble as they already taken 30 days of 45 days in which payment has to be deposited with builder and on top of it they were not returning the papers too when I told them that I am not interested.

I raised my voice to all levels and since trust was broken my point was clear" I dont want to deal with Axis Bank". To add an insult to injury they were not returning my paper and kept on delaying it. I was not told whom to contact and they stopped to answer my calls too.

Since it was end of month one fine day they called my up and told me that my loan is approved on 89% and Rs. 5618/- as processing charges at 11%. I said NO and that I am no more interested. My plan was to engage HDFC as I was fed up of people of Axis and from their attitude of keeping people in ransom.

They tried to convince me but I asked them to give my papers. Finally I was asked to collect it from Aruna Asif Ali brach in delhi but when I visited that place at 10 in morning I was told that my loan has already been disbursed.

I objected to sanction and told them to give me back my papers. The co-ordinator told me that loan is disbursed and in order to cancel it I have to pay interest charges. This made me angry and I started to question the bank on almost everything. On other end I was told that DSA involved has declined any sort of conversation and on top of that he is asking me to show up the papers where i has declined the disbursement.

After 4 hours and much I waiting I banged into conference room to talk to their Head (by the way no one from Axis Bank was allowing me to meet him). Head was good enough to give his time immediately. I explained the whole case and the owner of DSA was also called there.

The Head of Retail asset branch at aruna asaf ali branch then studied my case from all scenarios and assured me that nothing will happen from now on. He told me that 89% at 11% charges with Rs. 5618/- is final and that nothing would be asked from now.

Since head was saying that I finally agreed and came back home. But the main point still remains "even though the head of retail asset assured me that processing fee of Rs. 5618/- would be final, it has been 10 days and I have still not recived the same in written format as was agreed by him".

I am not sure of next step but I am prepared to take it to conclusion.

PS.- Names have not been reveled as I strongly believe that its the system which has a problem rather than individual people. People are merely means to a process established by an organization which is Axis Bank in this case.

Leave your comments in case you have doubts.