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rohit patil (T.S A.)     27 March 2011

Unknown monthly charges in my SBI home loan account

Hi All,

   I have taken a home loan from SBI (Its Max Gain) in June 2009 and they told me that I can start my EMI whenever I want. So I started my EMI immidiately after getting my possession in Nov 2009. Now since then I see that my home loan account goes in negaive after 10 days of pying my EMI. Earlier it was going negative by Rs 750 to 800. So I met SBI Branch manager and she told me that you may be missing one of the previous EMI and the interest is getting charged. So I paid one extra EMI but still the account going in negative. so I again went to met the branch manager. She said try paying more more EMI and I did this third time. but the account still goes in negative. The only difference is that the amount has been reduced to Rs 350 odd. And now the brach manager says I can't do anything as it will be charged. But she is not ready to give me exact clarification of the deduction.

   I need your advice on what step should I take in this situation as I am helpless beucase the Branch manager itself is not helpful. OR Can I take any ligal action against it.

Kindly advice.

I would be very thankful to your advice.


Rohit Patil


 10 Replies

adv. rajeev ( rajoo ) (practicing advocate)     27 March 2011

Issue notice to the bank to stop the charging more interest  and ask for the procedure and also don't forget to take the a/c extract before issuing the notice.

rohit patil (T.S A.)     27 March 2011

Sure, Thanks for your advice. But I am not sure if they are charging more interest or its some other intereset component. Well Can we also file an RTI for the unkonwn deductions? OR can ask the branch manager to give the clarification of the deductions in writing?


Thanks & Regards, 

Rohit Patil

bhagwat patil (Property due diligence 9422773303)     28 March 2011

ASK bank all detail papers of contract and account extracts.then we will find out hidden cost if any.if is only a accounting mistake it can be clarified within the branch.without getting fullproof information in your hand do not go to court of law. there are differnt forums also like ambugman RBI GUIDELINES INTERNAL AUDIT FOUM ETC.

CA VK Dwivedi (Job)     28 March 2011

Dear Rohit,

Indian Banks specially PSU banks adopts therse kind of malpractices. I would suggest you to meet the manager understand the reason an I am sure BM will give you 100 reasons most of them will be fake reasons, BM would say some past interest/ late charges/ new circular and so on.

Send them letter by Registered post with Acknowledgement (RPAD) and ask them for Convincing reason (with proof) and give them 15 working days to reply (Email will also work). Once you get the reply Consider it whether valid reason or not. If not valid ground of charges again send leeter to Bank with RPAD/ email and request to retore your account in specified time, and if  they do not do this then go to consumer forum and get those back along with some compensation.

Also, register your complain with RBI in RBI website.

For you informaiton, SBI mislead people by advertising lowest rate of interst for Housing loan (@8%) whereas  for First Three (3) months bank charges ONLY INTEREST and wil NOT deduct principal this they call as Moratoriam Interes (the logic of which I dont understand except the fact of cheating the customer). 

I encourage more and more people to go the Consumer Court and Fight against these malpractices.

I do not have faith in the Suppliers/ Serivce Providers/ manufactures/ Producers. Most of the time customer/ consumer is propogated as Defaulters whereas the Service providers/ Suppliers are indulging into Malpractices irrespective of their name in the market.

Some of them are PSU Banks (specially SBI as they think an individual customer can not do anything against Banks),

Reliance Communications (they activate any VAS with customers permission).

Tata Indicom (their Customre Care is Fussy and one of the most lazy/ lethargic people right from Sales Executive to Nodal Officer and ALL the charges and costs due to their default will be poured on customer)

and So on...

So fight against these Malpractices howsoever nominalthe amount is.


rohit patil (T.S A.)     31 March 2011

   Yesterday I went to the SBI Loan processing department and told the whole story and you know what the SBI  emp said, I do not know what charges you are talking about. she pull up my accout statement and showed that I don't see any -ve balance in you account. So far my account is in -ve by Rs 950 and SBI EMP says its very small amount and pay it off. When I asked her why should I pay when I don't know what these charges are. Then she says you have transfered money from Max gain to Saving and those charges are nothing but interest on the transactions done by you. If I am transferring my own money whey SBI should charge me for that?

  This is really frustating....!

Now I have taken the statements from the day one. Let see what happens.

Anyway Thanks for Everyone's advice.


Rohit Patil

bhagwat patil (Property due diligence 9422773303)     31 March 2011

Most of the Bank officers are ignorant of laws and also arrogant against the borrowers.  After the enactment of the  SARFAESI Act, bank officials are thinking and acting, as if they are more than Courts and judges.  That is why they dictate any terms with the borrowers and customers.  In this context, the legal fraternity has greater role to play,to make them customer-friendly.ask them all agreement papers signed between you and bank officer.

Mandip Abhra (Marketing Manager)     15 June 2011

you should have preffered HDFC home loan. HDFC would have provide you the better assistance..

Arockia Sankar   03 November 2016

Starting from 30th September, every month end there is a fee of 575 applied to the housing loan account wherein the EMI was paid on time (ECS thru SBI). I called and checked with the race course road branch. They said its a system issue and asked me to send email to to revert back the money. I sent and followed up multiple times thru email. Didint receive any response yet. As the fee is getting added into the principle amount we are getting interest calculated for that amount as well. I checked with my friends who has been taken loan with me. They also have the same issue. we got the same fee applied on 31st october as well. Very poor response (/NO RESPONSE) from SBI. Need your advise on the same. I am foolowing-up with SBI people from 14th october. I have mail proof of the same


rohitvilasjadhav (Software Prof)     07 December 2016


i have questioned SBI today.

Arockia Sankar   07 December 2016

Nice Tweet. Thank you sir for taking it further. I raised this from customer care till Sbi chairman. No response yet. It's more than a month I am following up. I raised complain to rbi ombudsman yesterday. Hope to get response. The hectic thing here is the month when the wrong late fee was charged, the interest is more. My loan is reducing interest loan. But the interest part is more comparing with previous month's. Don't know how many crores of money Sbi has taken from customer wrongly.

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