Citibank loan settlement

Hello

I had taken housing loan from Citibank and my loan account number is 305402. I am trying to pre-close the loan by paying the balance money. Following is my experience with Citibank.

Knowing that I an in the last year of my EMI payment, they increased the interest rate drastically. Their logic is since there is 2% pre-closure charge; it will not be beneficial for me to borrow from some other bank and pre-close Citibank loan unless the other bank interest rate is atleast 2.5% less than the current Citibank rate. The officer whom I contacted even told me this calculation and said that if I add all the other pre-closure charges, I will be under loss if I borrow loan from other bank to pre-close this loan. They are ready to give new loan at lesser interest!

Earlier you could walk to any of their collection centers and pay the remaining balance in one shot and request for closure. Now you have to call their customer care number and request for a letter of final settlement. After receiving the letter, you have to keep your cheque and call them again for collection. They collect the cheque and after one week, if the money gets transferred, the loan is closed.

As per the new procedure, I called them for a pre-closure statement which they assured that will reach me in one week. After waiting for 10 days, since I did not get any reply, I called them again and they said that it will reach me in two days. After waiting for three days, I had to call them again and shout. Finally I got the letter after 15 days of my request. I prepared a cheque on the next day and started following up for collection. After lot of follow-up, their courier person came and collected the cheque.

It is almost 12 days since they have collected my cheque. They have not submitted the cheque for realization. I have made number calls to them to find out whey they have not yet submitted cheque for payment and every time they promise to check and get back which has never happened. Meanwhile they have promptly taken an additional month EMI and are not ready to give that money back until loan is closed.

They are trying their best to delay the loan closure and meanwhile earn few hundred rupees more as interest! Beware of their cheap tactics and never go to them for any loan.

Ravindra Babu