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Kotak Mahindra Bank / false commitments and hefty charges

1 India Review updated:

My name is Saravanan. U residing in Chennai, I am a Customer of Kotak Mahindra Bank. I was left with no option other than escalating my problem to the Complaints Board.

I have a personal loan with Kotak Mahindra bank my Personal loan number is SPL - 43683 agreement dated 26th December 2006.

The Loan Amount was 3,02,581.00 and the EMI was Rs.10590.00 at the rate of Interest 15% for 36 months. the EMI started from January 2007 and I was a regular payer and there was no defaults so far. During sometime last month I was approached by Kotak Mahindra Bank's Sales executive Mr. Karthik (Mobile Number:+91-[protected]) asking about the Loan top-up. I too had a need of money due to my brothers marriage which was in the near future.

I applied for a top-up for 2 lacs, Wherein the Bank's sales person committed me that he will get me the best interest rate. I was given an agreement on 29th Jun-07 for 5 lacs for 36 months and the interest rate was whooping 18%, and there was a loss of Rs.25000/- for me (Interest paid on the old loan). So I rejected the offer. At the time of applying all I understood was the top-up loan will be either a new loan apart from the earlier one or an extension of the old loan. (The sales person failed to inform me that the old loan will be closed and this will be entirely a new loan). Then the same day I was contacted by Mr.Velu (Mobile Number:+91-[protected]) who claimed as the Manager for the personal loan division of Chennai.

He promised me that he will give me the loan for 16% and the EMI will be 17578/- and also he will waiver me the Insurance cover and there will be a 2% service charge for only the extra loan amount with service tax. So my loss will be minimal. I asked him twice and he said I have to trust his words as a manager.

Commitments made by Mr.Velu.

1. Service Charge of 2% for 2 lacs (Loan Amount Availed Extra with 12.25% Service tax on that).
2. Interest Rate at 16%
3. Waiver of Insurance Cover and other Charges.

So based upon his commitments even though there was the loss of Rs. 21,412.00 Interest I have paid for the old loan I decided to go for the new loan and signed the documents.

When the Cheque was credited in my Account, I was traveling and I was shocked because the Amount credited was Rs.2,08,942 Via CHQNO:045168 on 04/07/2007

But I was promised to get Rs. 2,33,000.00. I have enclosed the calculation Sheet for your perusal.

Loan Amount

New Loan: 2,00,000.00
Pricipal Outstanding from Previous Loan: 41,519.00
Total: 2,41,519.00

Deductions:

Service Charge of 2% on the Loan of 241519.00 : 4,830.38
Service Tax on the serv Charg at 12.25% : 591.72
Total Deductions : 5,422.10

Net Payable was to be Rs.2,33,096.90

I was cheated (I would consider this as an appropriate word) Rs.24154.90 by Kotak Mahindra Bank people.

I contacted the Customer Care division immediately and inquired for which they told me that the approved loan amount is 4,97,000.00 and the rest as service charges, Insurance and Handling Charges. I spoke to velu and Karthik and they said that they will get me a clarification but failed to do so. I would Have tried more than 100 times and have even sent SMS messages but they are not bothered to give me an proper answer. I escaped this problem to Mr. MohanRaj who claimed himself as an Regional Manager (Mobile Number: +91-[protected]), He was also is non-responsive. Even though the loan amount is 4,97,000 I was supposed to get 2,30,096.90 but I have received only Rs.2,08,942.00.

I received the loan details and papers yesterday after making several calls to the customer service number : (044) [protected]. I was shocked to learn nearly Rs.11,168.00 was the service charge and service tax with Insurance cover of Rs.3,510.00 and documentation charges of Rs.841.00 and handling Charges of Rs.1150.00. (What is this handling charges I really don't know).

I have made several calls and have requested for explanation but no in the bank bothered to answer my calls.

Kotak Mahindra bank has failed to follow the Code of Fair banking Rule and they have imposed huge charges without prior notice and also they have provided wrong information and false commitments.

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Comments

  • Ch
      26th of Jul, 2007
    0 Votes

    Same Mohan raj is cheating all Mr. MohanRaj who claimed himself as an Regional Manager (Mobile Number: +91-9841072251). Now he gave me a new number mohanraj-9884072251.

    He can't be a regional manager and kotak bank loan are not fair and even if the bank is good these guys are not good especially miohanraj and ladies working in parrys.

  • Sa
      17th of May, 2008
    0 Votes

    Thanks for the eye opener. I was planning for a personal loan from Kotak Bank. Now I have to review my decission. Its bad to know that the sevices of a good bank is detorrating by the day.

  • Pa
      24th of Jul, 2008
    0 Votes

    Kotak Bank is trying to cheat all customers. For the past 30 days I have been trying to close my accounts in Kotak Bank, but they refuse to close them giving excuses like ...
    Closure Form is not available as printer is not working.
    We have lost the closure form you submitted, submit it again.
    We have to clarify some details of your account from the head office, please come back after 1 week.
    They are not letting me even close my accounts in the Kolkata, Dalhousie branch and the Kolkata, Ballygunge Branch
    It has become a money making racket.

  • Wr
      16th of Feb, 2010
    0 Votes

    I am Rinkesh Rameshbhai Prajapati. I am from Ahmedabad.kotak mahindra bank cheat with my father.My father give settlememt money as per giving bank employ. Now he told us loan completion letter u get in 2 to 3 days. but they talk with us very poor. They dont maintain manner. and he dont give us loan completion letter. my mobile number is 9276107874.
    sir, after that bank employ told me u give more money. then we give 3500/- Rs. then he told us loan complition letter give in 5 days. but still we are not getting.
    sir, we are middleclass person. your bank employ hareessment us if u not give more money v call u police.
    At Ahmedabad Main branch shivrajni. my father minimum 100 times gone. my mobile call they are not accept. i am middleclass person.
    Mahidra kotak person which my father & me talk i give you them as bolow..
    jitendra bhatiya
    devu thakor
    rajak
    brijesh


    My name is Rinkesh R Prajapati
    my mobile number is 9276107874
    Plz help me. i am break due to kotak mahindra bank wrong commintmemt.

  • Pr
      15th of Apr, 2010
    0 Votes

    I believe Kotak is the WORST BANK i have ever transacted with. They charged me Rs. 840 for non maintenance of minimum balance. Orignally they promised me that the min. bal. is Rs. 5000 coz i have trading and demat accounts with the Kotak. However, after sometime i see this hefty charge, once i called up they said that min. bal. requirement has increased from 5k to 10k. When I asked that why i wasn't informed of the increase in the min. bal. requirement, they replied that we usually send the letter but it might have not reached you coz of postal deptt. mistake or whatever. Then I requested them that you should reverse the charge coz i wasn't informed of increase of min. bal. amount. They said that you can keep a min. bal. of 10k for next 6 months and then "we can talk to the Manager for waiving off the charges". I said WTF, am I going to remember your Rs. 850 charges for next 6 months.. WTF... Hell... I just sold all my Stocks and Futures and Options from Kotak Securities rightaway on the same day... and I have downloaded the Bank Account closure forms.. Now I am going to close all my Kotak Accounts and never ever transact with them... There are hell lot of banks in India and thousands of Brokerage houses...

  • Sy
      15th of Aug, 2018
    0 Votes
    Kotak Mahindra Bank - Unauthorized credit card charges
    India

    Dear sir,

    I was making payments time to time on my credit card bills till now, But this time i am charged extra interested charged of 3 times.I raised complaint about it to make refund but till now people are not responding.

    thanks & Regards
    syed sirajuddin
    contact 8143143310.

  • Ma
      3rd of Sep, 2018
    0 Votes
    Kotak Mahindra Bank - unown payment dedected not send me otp
    kalamboli
    India

    bina otp ke bank ne 3700 automaticlly paisa dedect kar liya plz my payment refunf my account

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