Date : Mar 3, 2009

Question

Hi Harsh, I am Rohan and have taken a loan with citibank for 40 lacs on 30-Aug-07. Since then I have been telling them from two years now, that they have booked all the conditions incorrectly . The marketing department promised me something else. Agreed tenur : 20 years they booked it for 10 years Agreed interest : 10.5 they booked it at 13.5 % Agreed emi : Approx 40,000 they are still charging me 60,910 (SIXTY one thousand) After fighting with them for three months they reduced the interest, but they say clearly that they cannot make the change in their online system. They are expecting me to make a payment of 60,910 every month and are charging me penal interest as well as SI bounce charges every month. Seeing these conditions and the high interest and penal interest I want to get rid of CITIBANK and look for a better option. It would be great if you could address this I have seen a lot of people get their queries sorted after they have lost hope from all quarters. I have all the relevant proof and documents to support it. Please find attached the letter I gave them in writing recently. Thanks, Rohan I gave the following application in writing to Shraddha khandelwal at Citibank Indore. Ref : CITIHOME LOAN NUMBER - 319877 Incorrectly booked and overcharged Date 17-Feb-09 Hi, I have been reporting repeatedly from 30-Aug-07 that my loan has not been booked according to the conditions agreed with your marketing team and have been getting false assurances that they will be rectified. Earlier I was levied a hefty interest of 13.5 which was corrected three months later, the tenur was corrected to 20 years But the EMI remained 60910. I called up phone banking a couple of times and asked them to change it, I was assured that they would look into the matter. I also received a letter (SMS-ID 242179on 30 Aug 2008) stating that the new EMI is 36455. But it never got reflected in the online system. Whatever money I deposit was being claimed. I request you to 1) Update online system to show EMI of 36,455 for 228 months. 2) In spite of having excess balance in my account for the whole month I do not understand why you always claim previous months EMI. I am told that 6487.00 Rs has been levied apart from extra charges on my account. 3) I see every month interest levied does not tally and penalty is there in all charges. Please revert It is not my fault. Thanks, Rohan 09406682770 Reference numbers of tickets raised. 6709027711 5709020020 6609017602

Answer

You ca lodge a compaint on the Bank's official website. However, if you have signed a document with the above mentioned "incorrect" terms and conditions, there is little that can be done. You can explore the options of switching a lender but since there have been bounces on your account, you may not be able to get a loan. However, you can apply for a loan to another bank and try and convince the potential lender of your issues.

ou can also check the 'Should I switch my loan' calculator on Apnaloan to check whether it makes sense to change the lender.

You may want to consider the prepayment charges payable to the exisitng lender and the processing fee to the new lender. You can check the home loan comparator to compare offers.