Yearly Inspection charges on Housing Loan

POSTED BY Chethan S ON April 27, 2013 10:26 pm COMMENTS (12)

In the month of March, Syndicate Bank levied a charge of ₹1124 on my housing loan under the heading “OUTGOINGS BILL INSPECTION CHARGES”. Unable to understand what that was I asked the bank officials who told me that it is audit charge and will be levied every year. I have been regularly paying EMIs and I am unable to understand what sort of audit bank does! My loan is not even a year old (I had taken it on 2012 May).

I was also told that these charges depend on the amount of loan. For less that ₹5L, it would be less (mine is ₹10L). I feel that this amount is unreasonable and fairly high. So I would like to know if all banks out there levy such fancy charges. If not is there any scope to get the amount reversed and how I can go about that?

12 replies on this article “Yearly Inspection charges on Housing Loan”

  1. ashalanshu says:

    Dear Dextor, please read your Loan agreement to know more about these charges.

    thanks

    Ashal

  2. dextor says:

    Hi,
    Even I have home loan from syndicate & every year they are charging similar charges from me. Following are the charges –
    OUTGOINGS BILL INSPECTION CHARGES – Rs. 2250
    OUTGOINGS BILL EC CHARGES – Rs. 550
    If they send me some letter, they charge Rs. 100 per letter.
    Many times Rs 10 as penalty charges, which I don’t know why neither bank people.

    If I talk to bank officials they just say that these charges are mandatory & everyone is charged same. I also called up CPC branch, who told that I need to talk to my home branch itself. I think these are some kind of optional charges which branches are applying on customers for their overincome.

  3. Chethan S says:

    Ashal, I would love to do that. Only thing which is holding me back is re-documentation and some processing fees. Adding to this as I live in different city it becomes little difficult to travel to get the formalities done. Still if benefits outweigh these troubles I can do that! 🙂

  4. Dear Chethan, how about changing your syndicate bank loan with SBI maxgain?

    Think over it.

    Thanks

    Ashal

  5. Chethan S says:

    For my online complaint, I received an email reply from Syndicate Bank today which stated: “The charges debited is annual inspection charges being collected every year.”

    Now I guess if I procure the loan agreement and go through it, I might find a clause something like this: “Syndicate Bank reserves the right to levy charges from time to time…. and so on”

    If such a clause is found I don’t think filing an RTI can help me in getting the charges reversed. So my query now is, will approaching banking Ombudsman help in this case? Can I say that the charges are unjustified and appeal to Ombudsman to direct the bank to return the amount charged?

  6. Chethan S says:

    Thanks Ashish for pointing me to consumercourt link. The customer there is also talking about the very same charge(s). As noted there I was also charged ₹10 as penalty in March but it was credited back soon! I never missed payment deadline (bank had setup ECS from my SB account in the same branch).

    Thanks to all suggestions here, I have decided to get to the root of this issue. As a first step I have raised an online complaint seeking details about this charge. Based on their response I will take next step.

  7. Dear Chethan, your job is clear now. First of all, please ask for the copy of loan agreement from the branch. Read it & then decide your next course of action.

    Thanks

    Ashal

    1. Chethan S says:

      Yes Ashal, it’s indeed clear to me now. Will do it at the earliest and let the forum members know.

      1. Ashish says:

        Dear Chethan,

        This is surprising that bank had not handed over the loan agreement to you. Its bank’s duty to handover the loan agreement once the loan is disbursed, whether partially or fully.

        I had my 1st home loan with HDFC and they levied no such charge, later to reduce my interest charges, I moved the loan to Bank of Baroda and even they did not charge any such additional amounts (except for some home loan insurance).

        I have recently taken another home loan from HDFC and as of now there is no such charge levied.

        Just going through the net and found this;

        http://www.consumercourt.in/home-loan/78712-home-loan-syndicate-bank-interest-other-charge.html

        Some other guy also had a similar problem, just like you, with syndicate bank. Seems like bank has this kind of hidden charges not informed to customer but has been levying these (must be part of the agreement) so that customer is in dark. Shocking!!!

        Ashish

  8. Dear Chethan, I’m first time hearing such charges. Please read your loan agreement first to know the details or mentioning of such charges.

    Alternate route, file an RTI application for these charges & know the truth.

    Thanks

    Ashal

    1. Chethan S says:

      Thanks Syamantak and Ashal!

      The bank did not provide me a loan agreement in first place!! Of course I had to sign on piles of paper.

      I will take the route suggested by you. It appears to me that I can only do it sometime next month as the account is in my home town as their other city branches don’t entertain loan account related queries.

  9. Syamantak says:

    read your contract document, if any such charges are mentioned when you signed the contract. If not, file a written complaint with the bank. have 2 copies while filing so that one one you can take an ‘acknowledgment’.. wait for a month for the bank officials to reply. if this doesn’t work, forward the same complaint (along with a copy of ack) to the banking ombudsman of your region.

    “if all banks out there levy such fancy charges? ”

    — No! I have 2 home loans from HDFC and none of them charges me any extra than the monthly EMI!

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