HDFC fears erosion in its market share

Irked by State Bank of India’s (SBI) move to offer home loans at 8% for the first year, housing loan giant Housing Development Finance Company (HDFC) is set to punish its wayward borrowers.

HDFC, fearing a slide in its market share, has decided to charge up to 3% of the outstanding home loan if its existing borrowers chose to switch their lender.

However, HDFC claimed that prepayment charges existed in the range of 0-3% depending on certain conditions. It added all lenders levy a prepayment charge as a difference between the contracted loan rate and the market rate prevalent at the time of the switch.

Don’t you think this is an unfair trade practice by HDFC ? Log on your complaints if any against HDFC Home Loans.