[Resolved]  BHW Birla Home Finance Ltd — Home Loan

Birla Home Finance — Home Loan Rates

I have taken a home loan from Birla home finance at floating rate of 7.5% in April 2006.

Ever since, interest rates have gone up and my home loan interest rate has also touched a peak of 11.5%.

When the interest rates go up, there is a very prompt letter from the organization saying that interest rates have gone up and they would be pasing on the increased interest costs to customers from next month.

However, when the interest rates go down, there is no such reaction from the organization.

They are able to offer new home loans @ 10.5% to customers but not reducing my interest rate. When asked, they say their definition of floating rates is linked to their internal cost of funds which has not come down and so they cannot reduce rates for existing customers.

I really feel duped as a customer and feel company is taking advantage of me because of my negligible bargaining power as a customer.

I would want organization to explain this differential treatment and not term this as a marjketing strategy to get new customers. I would like to know what action and steps can i take to get out of this situation.

Hi, I ahve also taken home laon from Birla home finance. Current HOme loan rate is jan 09 is 12.75 % they are saying they will reduce by 0.5 in aor 09. what is useless thing . is it advisable to change bank to other bak which is offering 9.5 % by paying penalty & processing chargse. BHW is no resonse from them . why they are reducing in april not effecting from jan . also outsite its 9.5 they are redcing only uot 12.25 % . is their any court where we can take any action.

My biggest mistake till date in terms of my financial decisions has been to switch my Home Loan to BHW. I have had problems with this bank in every respect, be it false commitment, high rate of interest, being non responsive, never sending documents like agreement, provisional statement in time ...

I will light candles in my home day, I get my loan shifted to some other bank from here.

Its a pity, there is no one looking into the mismanagement by banks causing so much harassment to customers.

Sir,
My son also has taken loan from your company, & also he has paid the lumpsum amount in nov-dec 2008, But so far there is nil communication from your end about the new loan tenure.I think it should be by this time Also please communicate the new ROI & the effective date.(since RBI has made all possible so as finance institution reduce ROI on home loan)My son's loan account no. is D76/000082(Mukesh Singh Bhati). Thanking you.
Vijay Bhati

I have also availed home loan from BFL and is facing similar experience.They should reduce interest rates otherwise every one switch over to other financial institutions or nationalised banks.

Totally agree with the lot. I feel we have been grossly mislead, exploited and cheated by the company. Its a big shame on the part of the company. I severely warn people against applying for loans from Deustsche Post Bank (erstwhile BHW Home finance)

I am also facing the same problem and The loan which i took 03 year back from bhw hom fin dabad(Ahmedabad) was my biggest financial mistake. without giving any letter they have changed my tenure and loan interest.

I beleive this is the worst bank the world, totally irresponsible, high rate of intrest, irrespect of govt measures this bank is not ready to cut down
rates.

(BHW home finance a.k.a. DeutschePostBank)

They truely are the WORST bank on earth to lend from. Bunch of liars and cheaters. I took a loan for 4000000 for 20 year tenure at 8.75% in 2005, with initial emi of 26xxx.

Since the day I took loan from them, it ONNNLLLYYY went up on Emi's and interest and tenure.
So today i stand at 13.95% with 37000 emi for 33 years.

And after paying emi's (from 27000 upto 38000 on for 3 years my pricipal went down only by 34000 on loan of 4000000. And now since Jan 09, when seemingly every bank in universe has cut their PLR and home rates, they plainly defy their 13.95% rate on home loan with their company's financial condition.

Genuinely speaking, only a foolish should go to this bank OR after becoming their customer, will soon prove himself like I did.

Please go only to a natioanlized bank, as they are the only ones who reduce their PLR/floating rates soon as RBI cuts are announced. Also most of them dont even charge pre-payment fees. They are trustworthy going by book, unlike these cheaters who hide every wrongdoing behind company's policy.

I too had such experience with such Rogues of BHW. Blasted them many times. These buggers always send hike letters and deny sending interest reduction letter. I finally moved my loan to LIC. Best way to handle such people is to approach press people. Approach some TV channels and tell the grievances and present their communications. Anyway, all of you have move your loans to other banks. ICICI has reduced home interest rate from 12.75% to 8.75%.

I fully agreed with you. I made biggest mistake as BHW FInance Ltd Ahmedabad offer me 8.5 percent loan in the year 2006. Now the interst reate has increased to 12.5%. When i informed BHW officer, they told me that that interest rate will come as per with other Nationalized bank. But till now the interst rate has not come down.
I am planning to transfer to either SBI or BOB.
APR

Never go to BHW home loan. They make 1000 promise but nothing in action. Worst to handle them. Totally irresponsbile. Evern after settlement they don't give you the docuements. never the interest is reduced and they don't bother about the customer. Pain to deal with them

I have also taken loan from BHW Birla Home finance Ltd @ 8.[protected]@ interest rate. But at present they are charging 12.25% interest rate. In the last couple of months, RBI has taken lots of steps ( like cuts in CRR, Repo Rate, Reverse Repo Rate). the Birla home finance has not reduced the rate of interest.
I approached them in April, 2009, they replied that if I pay 1% of loan amount, then they will reduce/ shift the rate of interest to around 9.75% interest.
I am trying to transfer the loan to some other nationalised bank.

Same here. What to do now? Any solution?

The interest rate towards the my loan amount too has been revised upwardly stating the difficult financial conditions by the company for more than 2-3 times. I did spoke to Mr. Ramakrishna, branch Pune, objecting to lower rate of interest to new customers & unfavorably high rate of interest to old customers to which he advised to have faith in the company & continue believing in fairness of the company in its dealing with its customers.

But I’m very sorry to say that when I see myself paying the highest rate of home loan interest in the market of 11%, it becomes difficult to instill & continue with the suggested faith in the mentioned company.

I’d be very keen in understanding that why Deutsche Postbank’s charged interest is so high in comparison to its competetitors? With adverse financial conditions there were quick & frequent upward revisions undertaken, as did other company’s too but even after last corrections its possibly the highest in the market that you’re charging. Having called up the deutsche postbank, pune office I was told the option of paying more money & get my interest rate revised to 9.25% where my concern comes at. This must be a company charging me the prevalent competitive interest rates & not asking me the money to be rightfully competitive & fair.

If its the comptence issue with the company of not being competetive, I'd suggest the waiver of foreclosure charges by the company so that one may migrate to some other well settled & competetive bank.

I’d request forum's attention & clout to make Deutsche postbank's management reasonable, fair & competitive to its customers & bring in a single digit interest rate.

I feel that such financial companies should be asked to shut their office in India who are squeezing the old customers and charging lower interest rates from new customers. They use this ploy to bring more clients in their fold. RBI should take up these matters and such companies to reduce the rate of interest.

Even I am one of the sufferer at the hands of Birla Home Finance. First of all it was a nightmare getting loan from them.
Secondly after getting loan the initial rate of inerest which was 9 % which went up to 13% when the rates were going up. But when the interest rates went down the same was not passed on to me.
Whenever I write to them for giving me foreclosure statement for shifting the loan I don't get any positive response from them.
Will someone tell me if there is complaint cell in RBI on such practices followed by financial banks.

Yes I too agree with you. I too took a loan from this Bank (Loan Account No. HYD/001475) for an amount of Rs, 7.25 Lakhs for a tenure of 10 years around 6 years ago. There are still around 100+ EMI's pending to be paid to BHW. When my tenuere is for 120 months and out of which I paid around 70+ EMIs there should be around 50 EMIs left but how come around 100+ EMIs to be paid ? This is just because of the FLOAT RATE. It is a BLISS to these kind of companies to loot the people. As and when there is a hike in the interest rates, these guys immediately implement the hike, but when there is a fall in the rate of interest, these guys never implement the reduction in the rate of interest with immediate effect but at their will. What a height of cheating it is ? RBI should immediately involve seriously in these kind of malpractices and should get the bank be given back the entire moneny looted by them to the respective consumers.

Dueteche postBank or BHW (Birla housing finance) is the worst bank for the home loan .
Please never take any loan from this bank they r totally fraud people. I have seen people crying,
scremaing in there offices as whatever they promise / offer is totally wrong and fraud. Never
trust them of whatever they say. All there promises r fake. They keep on increaing the ROI
every 3-6 months at will. They also keep on changing there names and office location as people
know these names r blacklisted.

Dueteche postBank or BHW (Birla housing finance) is changing interest rates without informing consumers. currently they are charging outrageous 13% and the EMI payments are increasing forever. This is daytime robbery. Please write letters or talk to press and educate anyone you know about the floating rate. this can destroy many families. the bank should inform customers anytime interest rate and EMI tenure changes atleast once in 6 months.