HDFC Misinformed New Loan as Top-Up

[Gurpreet_PA]

I need expert advice regarding a misrepresentation issue with my HDFC personal loan.


I had an existing personal loan of ₹3 lakh (@12% for 3 years, EMI ~10k, 1st EMI in March 2025). After 7 EMIs (September), I needed ₹50,000. My home branch called and said I was eligible for a Top-Up loan of up to ₹2.5 lakh. I clearly requested only a ₹50,000 top-up.

However, instead of giving a real top-up, the bank closed my existing loan and created a new loan of ₹3,05,000. From this, ₹2.5 lakh was used to close my old loan, and ₹52,500 was given to me, 2.5,00 deducted as processing fees — without clearly informing me this would be a full refinance, not a top-up.


Because of this:

• I lost the benefit of the first loan (7 EMIs already paid, including ~₹20,000 interest).
• My interest schedule restarted from zero.
• A new 36-month loan (@12%) was forced, with a 12-month lock-in.
• I now face a 4% foreclosure charge if I want to close this loan.

My mistake was trusting the process because it was handled by my own Home Branch employee, so I assumed the information was accurate and in my best interest. The entire process happened over phone calls, and the loan amount was disbursed first. Only after receiving and reading the loan agreement did I realize that my old loan had been closed and a completely new loan was created – something that was never explained to me beforehand.

I want to know what action I can take and what would be the best way to seek a resolution.

Thanks

 

[Yogesh Maher]

Thanks buddy for bringing this upfront. Now a days on daily basis HDFC promoting top up loan on existing loan. And I was about to proceed with ₹1 lakh top up

 

[bekifaayatifan]

Complain to RBI ombudsman.