Educatin Loan for ISB Hyderabad Alumni review: Wrong charges of Interest

Phones : 0120–2539836, [protected],
(Mobile) : [protected], [protected] or [protected].

From : Commander G.S. Miglani(Retired)
M-35, Sector 25, Jalvayu Vihar, NOIDA – 201301

To
The Assistant General Manager
State Bank of India, Nirman Bhavan
Maulana Azad Road
New Delhi – 110011 14th April, 2009

Sir,

Sub : RECTIFICATION OF INTEREST RATE – EDUCATION LOAN(for ISB, Hyderabad) – LOAN A/c No. [protected] – Nyka Miglani

We have taken an Education Loan of Rs.10 Lakh from your Bank in April, 2005 on Collateral Basis. The loan was obtained for my daughter, Nyka Miglani, for MBA Course at the Indian School of Business, Hyderabad.

We find that the rate of interest being charged has been generally in the range of 10%, 9.75%, 9.5%, 9% and 8.75% since October, 2005. Whereas, as per the provisions of the letter dated April 20, 2005, issued by the National Banking Group, State Bank Bhavan, State Bank of India, Mumbai(Personal Banking Business Unit - Personal Loans Department), copy of which is also held in your Branch, approval was accorded by the ‘Competent Authority’ for Education Loans to students of ISB under the special package at a concessional rate of interest @ 8.5% p.a. (175 basis points below SBAR).

This provision was further corroborated by the Branch Manager, State Bank of India, Hyderabad University Campus, vide his letter dated 27th April, 2005 that the Rate of Interest on Educational Loans to students of ISB, had been reduced from the then prevalent level of 9% fixed to 8.5% (fixed). Copy of this letter is also available in your Branch. It was also agreed that in case of Collateral Security, the interest rate would be 8% p.a. (fixed).

It is, therefore, requested that due rectification of the rate of interest being applied be carried out, covering the entire period, up to date, of the repayment of the loan @ 8% (fixed). The resultant change in the EMIs be indicated to us to enable us to issue PDCs of the correct reduced amount accordingly, for the remaining loan amount and the period involved.

Thanking you,
Yours faithfully,

(Commander G.S. Miglani)

N.B. We have approached the Nirman Bhawan branch of SBI several times and they have said that despite their repeated efforts, the Mumbai National Banking Group has not sent them the product details of the special concessional rates of interest (8% fixed)which were offered to the students of ISB, Hyderabad in March 2005. Please do the needful now and oblige.
Thanking you,
Cdr G.S.Miglani
30-06-2009