Today i will share my worst experience till date i.e. availaing Home Loan from HDFC Ltd. As i mentioned earlier also HDFC Ltd. and HDFC Bank are 2 different entities and many people fall in this trap considering both are same…I also had very good experience with HDFC Bank so i decided to go ahead with HDFC but soon i came to know that both are different…Alas till that time it was too late…
As posted in my previous blog i evaluated 5 lenders but sole criterion for selecting HDFC Ltd. was that they were biggest and oldest lender…My personal philosphay is to go with Market Leader and u will not face any problem but unfortunately i was wrong this time…
I took the loan from Marathalli Branch in Bangalore and on fateful day when i visited this branch 1st i met a gentlemen Mr Niranjan who is branch head of this branch….He passed me the no. of DSA (Direct Selling Agent) Mr. Vinod & told me to coordinate with him….I called Vinod and he seems to be very nice person…He was very sweet during 1st interaction and promised me he will help end to end in this process & i just need to sit back and relax…Usually these DSA’s besides helping in Home Loan process also help in other activities like doc notarization, e-stamping etc. at your door step only…My 1st advice pls select your DSA very carefully and from reference only becoz like Wives they can also make your life Heaven or Hell :). Anyways I told Vinod that i will be late from office, he told for him customer is GOD and he can come at midnight also for business…I fell flat with his customer friendly approach and thought i have landed in right hands…That day he came at 10 PM in night and since i already had list of docs required for loan processing, i handed over complete set to him…During informal conversation he told me some health problems his family is facing (Which i think was cooked up to gain sympathy)….While leaving he told that he will let me know in 2-3 days on my exact loan eligibility and correctness of docs…Also to add i was applying for pre-sanctioned loan.
To my surprise next day i received call from him and he told all docs are in place for loan processing and now i just need to submit the processing fees (PF) which was approx 11k plus…He told he will come in the evening & will collect the cheque..I told him to waive this off as i have heard that usually HDFC waive off processing fees…He told me that now it is not possible but still he will chekc with his senior and confirm me the same…
Same day evening i received call from him and he told that he tried to convince his boss but now HDFC does not waive off the PF…I said OK u can come and collect the cheque same day late evening..He also assured that if i will tell him single case of PF waiver he will refund the same from his pocket to me. He also promised i will get sanction letter in max 2-3 days time….I gave him PF cheque same day evening and which was encashed next day…
This was beginning of my troubles…just after cheques encashment, DSA stopped taking my calls….i used to call him numerous times, dropped so many SMS but he never used to call back and respond back…Whenever i tried from my other mob no or landline no. he used to pick up call and apologize for not picking up call from my mobile no. with him…After that he stopped picking up call from my other no’s also so i need to find out innovative ways to reach him like call from PCO, friends mobile etc…
Anyways after many follow ups i got my sanction letter which took approx 10 days time..I was about to finalize 1 deal which was basically a transfer case (pre-registration) and there were some queries from Builder and Seller for which i called this person numerous times in 2 days but he didn’t pick up call…Evantually i lost the deal as no one waits for too long…
Before proceeding just to add that call centre of HDFC is good for nothing they are just pre-recorded human beings who will tell you to call your respective branch…The problem with branch is they never pick up call….Once i visited Marathalli branch and complain about this to Mr Niranjan..He told me it is not the case, I gave him LIVE DEMO and i called branch no. in front of him only which landed at reception…The receiving telephone was on mute and receptionist was busy in some other work..The branch manager was speechless..
Anyways coming back to main topic…At last i managed to finalize property and after too much struggle with DSA, i put everthing in place (90% efforts were mine only)…I visited branch multiple times and at last i finalized date for registration…I informed and took confirmation from HDFC before informing to seller as seller was suppose to flew from Delhi for same….I kept asking HDFC on status of cheques and they kept assuring me that cheques will be ready on D-day..DSA keep on telling me that have faith in GOD…I wondered cheques have to be issued by HDFC, if they only dont know status then how GOD will help..Anyways finally D-day came and Seller flew from Delhi and to my utmost shock…i was informed cheques are not ready….It was the last thing which i expected from HDFC…But i knew that i have to bear the brunt of taking wrong decision…I reimbursed airfare and hotel stay to seller…
Finally my cheques came after 3 days and i took xerox to be doubly sure that they are phsically present in branch…One day before registration, Marathalli branch gave me mobile no of 1 lawyer and informed he & 1 more HDFC executive will accompany us for registration..I called lawyer and he promised to meet me at 10 AM in marathalli branch….
On day of registration i along with seller reached Marathalli Branch at 9:45 AM and when branch opened at 10:15 AM..more surprises were waiting for me…I was told neither lawyer nor HDFC executive is coming for registration…As before registration i was suppose to go to Sellers Home Loan Bank (15 Km from marathalli) and then had to reach registrar office for registration before 3 PM as suggested by my lawyer so i was feeling jittery…Finally branch manager Mr. Niranjan told me that he has called my DSA and he will accompany me…He reached at 11:30 and we rushed to complete everything on time…FInally we managed to complete all formalities just in time..Thanks to my luck and bangalore traffic….
Since i had submitted around 15 original docs to HDFC Ltd..So i requested HDFC to issue acknowledgement regarding the same else i didn’t have any proof regarding the same. They were hesitant to issue the same and gave some or another excuse for same…I escalated to email@example.com and then to Mr Sujit (Operation Head) but again no revert..FInally when i escalated to Mr Nagendra (Regional Head), i received call from marathalli branch and they agreed to issue the acknowledgement letter…I felt as i as if i have climbed Mount Everest.
Recently i also came to know that they have increased Spread to 5.75% for New customer for 30 Lac to 75 lac band…When i called them to increase my spread also their executive told me to deposit approx 20k for same…It is gross violation of directives of National Housing Bank which has directed all HFC’s to charge uniform rate to both old and new customer…
I regret for my 1st bad decision in life and this post is just to make others cautious in their approach while dealing with HDFC
I am listing down my learnings with HDFC Ltd.
1. HDFC has different standard for different customers..Which is very unfair though they claim to be fair with all…For few customers they waive off Processing fees but charge whereever they can…
2. They have different interest rates for Old and New customer depending on Spread of customer…Which is a gross violation of directives issued by National Housing Bank (Pls click on following URL for same)
3. Pls insist on acknowledgement on HDFC letter head of original docs submitted by you with HDFC..They are very reluctant to share the same..I had to escalate to Regional Head to get the same else they keep giving 1 excuse or another for not issuing it
4. Before finalizing the date of registration, kindly insist on xerox of cheques in the name of seller
5. Select ur DSA through reference only..it is as imp as selecting right life partner
6. HDFC don’t reply to email queries (i sent it on firstname.lastname@example.org but never received any revert till date)
7. Contact us section on www.hdfc.com is not working from last 6 months or so..I myself is trying the same on regular basis
8. Call Centre of does not know anything about your loan account..They will only refer u to the home branch
9. No one picks up calls in branch
10. There is no grievance redressal mechanism in HDFC Ltd.
Update Nov 12, 2012: Recently i visited HDFC for part pre-payment of my Home Loan, They told me to fill Prepayment Request Letter. Basically this form captures complete information about your source of fund (Source of amount being paid for Part Pre-Payment of Home Loan). The HDFC executive also asked for last 6 months statement of Bank Account, from which i am issuing a cheque for part pre-payment.
I failed to understand the logic behind this move i.e. asking for last 6 months statement…I am issuing a cheque from the account, which is debited every month to clear EMI, Account is solely in my name and lastly, there is no penalty on part pre-payment irrespective of source of fund then Why should i provide my last 6 months statement to HDFC? I protested and refused to provide the statement then HDFC executive accepted my part pre-payment without 6 months statement.
Its an intrusion into the privacy of an individual becoz without any purpose HDFC is asking for your bank account statement. HDFC should not be concerned about source of fund and should only interfere to extent of recovering the amount due irrespective of its source. Hope someone will provide the logic behind this move on this forum.
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