I have homeloan with Citibank . I took 13lakhs in march 2004 for 20 yrs at the rate of 7.25% floating. EMI was Rs 10339
11th Nov, i got a call from citibank guys about rate of interest rise to 8.5% but they said as i am previlaiged customer to them & also as i am WIPRO GE employee, they offered me 7.5%.
So there was 0.25% increase in my total outstanding of 12.56Lakhs proicipal amount.
As i know that there is a option of paying 0.25% for pricipal outstanding in advance i can keep the EMI as well as total tensure fixed, i asked him about this option. He said he will check with his manager & come back.
They never came back and started taking EMI of Rs 11337 form 1st Jan-2006. from my citibank salary account without my approval for ECS.
I had given ECS for only Rs 10339 / month.
Almost Rs 1000 per month theyt are charging me more. when i called up home loan division and asked one employee named Kavitha, she gave big explanation which i could not understnd anything out of it.
My question to her was what is the current rate of interest on my loan. She said 7.5%. Then as per that i should pay only 10,600 approximatly .
When i again asked her why did they deduct Rs 1000 more she tells it is at 8.5%.
How can they increase EMI just like that. they said they have sent many letter to me. i didnot receive any letters. I once again sent my address status to citibank & asked them to send all details again for which they are not agreeing.
Now i am loosing money. what should i do.
if i have to come out of thi bank , i have to pay again 2% pre closure charges and processing fee for another bank.