Feb 25, 2009 11:15 AM
4848 Views
My experience with HDFC has been quite bad. I fell into their trap of'low interest for new customers' and took a loan at 9% interest rate in 2007. However, the interest rate remained at 9% for a short time only and as RBI increased the REPO and reverse REPO rates.
HDFC also increased it and note it, at the same time almost and at a similar or higher rate! Now, when RBI has reduced the rates by 4-5% in last 5-6 months, this institution has lowered the rates by only a meagre 0.5% but for my account it still has take effect(currently it is 11.75%.
While SBI is offering at fixed for a year 8% and after that linked with SBLR which is at 10%) that as they have 3-months reset cycle. Further, to add insult to the injury, they have increased the prepayment charges to 3% WITHOUT GIVING ANY NOTICE TO THE CUSTOMERS! MOREOVER, IT IS NOT EVEN THERE IN THE CONTRACT DOCUMENT!
And, I think this is the highest prepayment charge that you'll see even in any private bank! They always believe in getting new customers by making false promises and gimmicks and after you get in they will subject you to high interest rates and would not even allow to switch out by changing the terms and conditions abruptly.
So, friends, my advice is - AVOID THIS TYPE OF BANKS AS THEY TAKE RESORT TO CHEAP AND UNFAIR PRACTICES TO INCREASE THEIR PROFITABILITY AND THEY DON'T CARE ABOUT THEIR CUSTOMERS AT ALL.
The public sector banks are the best as
They offer better rates(at any point of time you can see a differential of at least 1 of 2%),
Better service, and
You don't have to ever question their integrity!
Nowadays, they have improved a lot in terms of technology so you get the same or better quality net banking and customer care facility!
