I had taken a HDFC Loan against Property – Dropline Overdraft facility wherein the sanctioned OD got reduced equally over a period of 10 years on a monthly basis. This was about 17 months ago. the biggest feature of this was use as much OD as required without any minimum requirements .Recently the bank has made a big change citing base II norms and wants to enforce minimum usage of 30% of sanctioned limit. Failure to do so would mean levy of a commitment charge of 0.1% of unused limit. The bank has given a limited period option for customers to downsize limit. so that they are able to use min 30% of limit. What I want from you is in your opinion the bank is legally right in changing the agreement terms unilaterally ?
Secondly will we be legally right in demanding refund of processing fees and other charges pro rata to downsizing. The bank says as per sanction letter terms no refund is possible. But then as per the same sanction letter how can they introduce new significant clauses which alter the scheme itself ?