Personal Loans- Misleading Information

[barige]

Hello All,
I am a new guy here. I joined RTI after i read something here when i was looking for RBI and its role in credit cards. Are there any regulations with regard to this by RBI. The agents who approach on behalf of the bank collect the documents promising a low rate of interest and send it for processing. When the approval comes the bank states another higher rate of Interst and the consumer is stuck. I was told by the bank that they will charge some fee if the loan needs to be cancelled. Please advice.

[ganpat1956]

Dear Barige,

RBI has given a clear set of operational guidelines for the credit card companies. The same are available at : Reserve Bank of India. Personal loans offered by these banks are on a different footing and not under credit cards.

On credit cards, some interesting discussions have taken place in this forum and the same can be viewed at : Stanchart Cards Bank Harassing me.

[kushal]

And do read the blog post by Ganpat here: http://www.rtiindia.org/blogs/ganpat...-a-novice-125/

[barige]

Thanks for all the information . I made a small mistake. I was not reffering to a credit card here.. My problem is with Personal Loans. I was told by Standard Charatered agent that my interst rate would be 15 and when i called the phone helpline of the bank they said 18 which i dont want to take. So I said i am not interested. The bank says they will be levying a charge for not taking the loan. Please tell me if its possible for a bank to levy a charge to close a loan which I didnt even avail.

[sidmis]

Hello Barige,
The issues you have raised here are not related to RTI directly.

Please tell me if its possible for a bank to levy a charge to close a loan which I didnt even avail.

Banks do charge a fee towards foreclosure of loans. In your case if you have not encashed the DD issued to you then you have not availed the loan. So no foreclosure fees can be charged.

So do not encash or return the DD you received from the Bank. Write to the Bank to cancel the loan citing your reasons. Send the DD once you get a confirmation from their side.
If they insist on a foreclosure fees then make a complain to their nodal officer.

If that fails then lodge your complain with RBI Ombudsman.

Sidmis

[kushal]

This thread is now closed and in information graveyard.

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