[rajatsingh78]

I bought a Swift VDI in April 2007, loan was from CMFL (Citicorp Maruti Finance Limited), I remember that the agent who processed my loan said that the loan percentage would be 12.5% reducting (I might be incorrect), however I recently demanded a statement of my loan amount where the interest is mentioned as 14.73%, on an additional enquiry they bank told me that I will have to pay 5% (of balance principal amount) as pre-closure fees if I decided to preclose.
To clear all this can I demand from the bank the contract copy that I should have signed for the loan in 2007 ?

[sabret00the]

Originally Posted by rajatsingh78

I bought a Swift VDI in April 2007, loan was from CMFL (Citicorp Maruti Finance Limited), I remember that the agent who processed my loan said that the loan percentage would be 12.5% reducting (I might be incorrect), however I recently demanded a statement of my loan amount where the interest is mentioned as 14.73%, on an additional enquiry they bank told me that I will have to pay 5% (of balance principal amount) as pre-closure fees if I decided to preclose.
To clear all this can I demand from the bank the contract copy that I should have signed for the loan in 2007 ?

Same here.
I had bought a Maruti ALTO Lxi in May 2007 and the loan was taken from CMFL (Citicorp Maruti Finance Limited). My agent had quoted 14.5% reducing balance which is why I went for a loan with them in the first place. They had never sent me a Loan Statement. Recently I went to their office in Kolkata (which is incidentally managed by TCS and not Citigroup itself). The lady gave me a print out which showed that interest was charged in excess of 14.5%. Further, I was told that the preclosure charge was 4% of the principal outstanding but the amount they are charging as per their statement shows more than 7% of the principal balance outstanding. I'm highly disappointed that a large companies as Citibank / Maruti could use such unfair trade practices.

[rajatsingh78]

Originally Posted by sabret00the

Same here.
I had bought a Maruti ALTO Lxi in May 2007 and the loan was taken from CMFL (Citicorp Maruti Finance Limited). My agent had quoted 14.5% reducing balance which is why I went for a loan with them in the first place. They had never sent me a Loan Statement. Recently I went to their office in Kolkata (which is incidentally managed by TCS and not Citigroup itself). The lady gave me a print out which showed that interest was charged in excess of 14.5%. Further, I was told that the preclosure charge was 4% of the principal outstanding but the amount they are charging as per their statement shows more than 7% of the principal balance outstanding. I'm highly disappointed that a large companies as Citibank / Maruti could use such unfair trade practices.

I am not going to go without a fight for this, if you are interested please join me, I am planning to first ask Citibank to provide me with the contract, if they fail, I will put a case in the consumer court for unfair trade practice, what I would advice you is to ask the bank to give the contact copy too, by the way, Citigroup's services division has been taken over by TCS TCS buys Citigroup?s services arm for $505m: Updated - Outsourcing and BPO : News

Though you might have to struggle a lot to get the contract papers because when you contact Citibank via phone or offices, the people you meet are TCS employees, who in turn will forward the request to Citibank, time consuming but worth every penny.

Imagine winning the case in the consumer forum and getting your money back, plus you can claim for mental harrassment

[rajatsingh78]

As a first step I have emailed Citibank at
indiaservice@citicorp.com, following is the email body -

Hi,

I took a car loan (<Loan Number Deleted>) in 2007, I would like to get a copy of the contract that I signed while taking the loan mentioning the rate of interest agreed upon(between me and the bank) and the preclosure terms.

Its been more than 2 years and I have never received any such document.

Regards,

[sabret00the]

Originally Posted by rajatsingh78

As a first step I have emailed Citibank at
indiaservice@citicorp.com, following is the email body -

Hi,

I took a car loan (<Loan Number Deleted>) in 2007, I would like to get a copy of the contract that I signed while taking the loan mentioning the rate of interest agreed upon(between me and the bank) and the preclosure terms.

Its been more than 2 years and I have never received any such document.

Regards,

Very nice. I suggest you also lodge a detailed complaint at Consumer Online Resources & Empowerment Centre

Trust me action and prompt action will be taken. I can say this from my own personal experience.

Regards
sabre

[rajatsingh78]

Originally Posted by sabret00the

Very nice. I suggest you also lodge a detailed complaint at Consumer Online Resources & Empowerment Centre

Trust me action and prompt action will be taken. I can say this from my own personal experience.

Regards
sabre

so did your issue got resolved, i.e., the higher rate of interest and extra pre-closure charges ?

[sabret00the]

Originally Posted by rajatsingh78

so did your issue got resolved, i.e., the higher rate of interest and extra pre-closure charges ?

No I didnt file a complaint against Citi yet. By personal experience I meant resolution of other problems.

[caliper]

One of the most amazing things to me is that companies try to get you to agree to a loan, sign a 50 page contract, and then don't give you a copy of the contract. Don't fall for them say, we'll give you a copy later. They won't.

The only way to get a copy, I think, is to have a photocopy machine of your own (like the 10k rs. multifunction printers).

[NetfreakBombay]

Originally Posted by rajatsingh78

As a first step I have emailed Citibank at
indiaservice@citicorp.com, following is the email body -

Hi,

I took a car loan (<Loan Number Deleted>) in 2007, I would like to get a copy of the contract that I signed while taking the loan mentioning the rate of interest agreed upon(between me and the bank) and the preclosure terms.

Its been more than 2 years and I have never received any such document.

Regards,

This would be an exercise in futile. Banks ensure that the process is completely legal. Unethical but legal.

Application form clearly mentions the bank can decide foreclosure charges on its discretion. A max limit of such charges [E.g. 5 or 7%] would be specified in document.

And usually while filling the form, ROI is left bank so that it can be determined later based on:

1. EMI promised to customer
2. Kickbacks for dealer
3. Finance benefit that is passed on to customer.

If you want straightforward (but tedious) loan govt banks are the only option.

[sabret00the]

Originally Posted by NetfreakBombay

This would be an exercise in futile. Banks ensure that the process is completely legal. Unethical but legal.

Application form clearly mentions the bank can decide foreclosure charges on its discretion. A max limit of such charges [E.g. 5 or 7%] would be specified in document.

And usually while filling the form, ROI is left bank so that it can be determined later based on:

1. EMI promised to customer
2. Kickbacks for dealer
3. Finance benefit that is passed on to customer.

If you want straightforward (but tedious) loan govt banks are the only option.

I guess everyone has to learn it hard the first way.

[aby.sam]

I have a WagonR bought with a loan from CMFL loan. The CMFL representatives at Maruti told me that the 3.3 lac loan comes for 13.63%. Seeing this post I am afraid of someone is eating my money for free.

After 29 months of loan prompt payment, I am planning a pre-closure, what would be the loss/gain to me.

I was thinking, I would lose money, if I pre-close, because my first year's loan stmt showed 90% of money paid as interest and very little to principal amt.

Any experts here, who can help me. Thanks in advance.

[GTO]

After 29 months of loan prompt payment, I am planning a pre-closure, what would be the loss/gain to me.

Finance companies take anywhere between 2 - 5% of outstanding principal amount as foreclosure fees (always bargainable). What's your loan duration? If you have only a couple of months left, it probably doesn't make sense.

because my first year's loan stmt showed 90% of money paid as interest and very little to principal amt.

Always the case. I was baffled the first time that I saw my car loan's amortization schedule.

[aby.sam]

Loan duration: 5 yrs.
Do I save any money if I pre-close my loan?

[jaibir]

Anyone has the contact details for CMFL? Email id, office etc will do

[rajatsingh78]

Originally Posted by jaibir

Anyone has the contact details for CMFL? Email id, office etc will do

Please check here