| Address: Meerut, Uttar Pradesh |
This is reference to my Loan Account No[protected].
I had availed an Education loan from Union Bank for my higher studies in one of the premium institute of India and a loan of Rs. 6,00,000 was released from bank at a fixed interest rate of 10.5%. The moratorium period for the loan was course period + 6 months after commencement of job. Since my course started in Jan 2011 the bank should have used the simple interest of 10.5% on loan amount of Rs. 6,00,000 till I started repayment of loan. But unfortunately in Nov-2011 the bank started using a different interest rate and as a result, a total of Rs. 4,599.52 was wrongly charged as interest during this period.
As a result of this error, the loan amount outstanding at the end of March 2012 was Rs. 6,94,545 which should have been Rs. 6,89,945. I started the repayment of the loan from April 2012 and the bank has used the correct rate of interest (compounding at 10.5%) but it was applied on the wrong outstanding loan amount of Rs. 6,94,545 as mentioned above.
The bank has been informed but no one is ready to reply or correct the error. The bank staff works with zero efficiency and does not care to provide right information to its customers. Worst bank to deal with, I must say!! Was this information helpful? | 
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