Interest rate reduction by RBI has not been passed on to Barrowers by Housing Finance Co.s -LICHFL

Since years together the Housing finace companies such as LIC Housing Finace Limited etc. are not passing on the reduction of Interest rate on Loans as annouced by RBI from time to time to its barrowers especially for existing barrowers. This will lead to gainful enrichment at the cost of its Home loan barrowers who opted for Variable rate of interest in their Agreements.
When equired with LIC HFL, they are saying that the conversion of existing loan from LHPLR to MCLR /or to Bank rate is not possible in LIC Housing Fiance Limited, whereas the same facility is available with Commercial banks.
Hence it is requested the Local Circles to take up the matter with Finace Ministry and concerned officials of RBI and NHB, so that the same facility should be made available retrospectively to Housing loan barrowesrs of Housing Finance Companies such as LIC Housing Finance Limited, as they are reaping the benifits of the interest rate cut annouced by RBI from time to time. more  

View all 7 comments Below 7 comments
How can we pass on to borrower and reduce their interest. that spread- that is difference between depostit interest and loan interest is transferred to LOAN WRITE OFF to 400 large poor custormers. Their dues are not less than 5000 or t10000 crores, poor people. Government has helped them in this covid-19 problem. before the year end, see your deposit interest you may not get. or your deposit itself. GOD SAVE THE PEOPLE FROM THIS GOV. more  
It will happen shortly other wise refer your case to me for balance transfer at a lower rate more  
You must have observed that in the event of reduction in interest rates the banks do not reduce the contractual rates of interest on existing fixed deposits. As such, banks will require to pay interest on such deposits from their other sources of income if the effect of reduced interest rates is given to the existing loan accounts (term loans) and most of our banks will become loss making. more  
Banks may not have cut interest on loans but promptly cut interest rates on deposits. This has hit senior citizens hard in this time of crisis. more  
Very Right more  
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