My Home Loan Tenure Extended Without My Consent

[krishc]

Recently due to rate hikes by RBI, the lending rate of my home loan has increased by 0.6% - which is ok. What is not ok is that to keep the EMI amount same, they have extended the loan tenure by 1.5 years without informing me or any kind of consent taken.
Any help on how to raise complaint to appropriate authorities is much appreciated!
P.S : My home loan provider is LIC HFL.

 

[iAmPm]

This is the default behavior. If your loan's lending rate increased then your tenure will increase mathematically. They want increase the EMI, it will remain constant

 

[saiki4116]

As mentioned by @iAmPm , that's the default behaviour. You can ask them to change the EMI amount as per the updated Interest rate and you might have to submit a new mandate. SBI also did the same thing, only when the EMI is too low, they have asked me to re-submit the Mandate.

Actually you should never be worried about the Loan Tenure, if you are going to pre-pay and complete it in 7-8 years. Regardless of the EMI, SBI was charging the actual interest on the Loan Principal Outstanding. If you pre-pay your interest outgo would reduce signficantly and that's basically same as low tenure EMI, but with high EMI you have to pay compulsorly, whereas pre-paying is optional.

 

[krishc]

I'm actually not planning to pre-pay as it would not be beneficial for me but at the same time I don't want the tenure to be dragged down as I can pay little more EMIs

 

[krishc]

I contacted their representative that I knew, he said just a normal letter of application will do and it will be reverted.

 

[prc1990]

I contacted their representative that I knew, he said just a normal letter of application will do and it will be reverted.

You meant tenure would be reverted back to the original tenure and EMI amount would get increased?

 

[krishc]

You meant tenure would be reverted back to the original tenure and EMI amount would get increased?

yes

 

[ashwink]

Any additional installment with this 👀

 

[prc1990]

yes

Would you need to sign a new loan agreement then?

 

[krishc]

Would you need to sign a new loan agreement then?

Nope, no new agreement needed
home loans can be restructured many times during the whole tenure if the borrower asks for it, and that is covered under the original agreement.

I was originally annoyed because they did without me asking for it and it was not beneficial for me either