HSBC Personal Loan

Hi,

I availed a personal loan from HSBC in 2006 at Bangalore, India. I was surprised to see the amortization calculation was totally incorrect. I compared it with other Banks and I found that HSBC amortization is quite different from others. I requested the Relationship Manager to explain how they arrived at the calculations. I was taken by surprise when I found that there was NO FORMULA USED to calculate the MONTHLY PRINCIPLE & INTEREST. The amounts were manually entered. Besides I also found that they add additional INTERESTS CHARGED to the EMI. To make things worse the entire LOAN AMOUNT IS NOT AMORTIZED. There were differences of over Rs 4000 in interest between HSBC and other Banks for the entire tenure of the loan. There is no notification from the bank for additional interest charges. I have been asking the authorities concerned to give me an explanation as to why this has happened. They are yet to get back and resolve the Issue.

I am gathering information if I could take it to the courts. Please let me know if you have better thoughts.

Thanks

Jevan

Warm Regards

Jevan Ebenezar

CJ

Comment On This

Hi,

I also face the same problem, but I dont think they are so bad as to enter the values manually.

Usually, month after month the % of EMI going to Interest decreases and % going to Principal increases. But this is not the case with HSBC. There is some constant fluctuation. When I asked them about the same, they gave some vague answer. BTW, mine is a home loan.