Shubham Jadhav alleges Axis Bank’s DSA agent provided false information regarding foreclosure charges on his home loan. Learn the full details of the complaint, including the customer’s demands and the bank’s published terms.
Complaint Summary Table : Axis Bank Misleading Foreclosure Policy – Shubham Jadhav’s Home Loan Complaint
| Field | Details |
|---|---|
| Complainant Name | Shubham Jadhav |
| Company Name | Axis Bank |
| Product/Service | Home Loan |
| Loan Tenure Applied | 360 Months (30 Years) |
| Main Issue | DSA agent allegedly misinformed about foreclosure charges |
| Agent Name | Mr. Vijay Deshmukh (DSA) |
| Customer Claim | Agent stated “0 foreclosure charges” after 8 years, contradicting Axis Bank’s official website |
| Official Bank Policy Link | Axis Bank Home Loan Foreclosure Policy |
| Customer Request | Change loan tenure to 9 years (108 months) |
| Complaint Source | |
| MLP ID for Disbursement | 000102831163 |
| Date of Complaint | 13 August 2025 |
Full Complaint Details
Shubham Jadhav, a customer applying for a home loan with Axis Bank, has alleged a case of misleading information by the bank’s Direct Selling Agent (DSA), Mr. Vijay Deshmukh.
According to Shubham, he applied for a 30-year (360 months) home loan, but during the discussion, the DSA agent claimed that if the loan is foreclosed in the 8th year, there would be zero foreclosure charges.
However, Shubham later verified Axis Bank’s official website, which clearly mentions that foreclosure charges are applicable for home loans, contradicting the statement made by the agent.
This discrepancy in communication has raised serious concerns for the customer, especially because loan tenure and foreclosure policies directly impact financial planning over the long term.
Shubham has requested that Axis Bank adjust the tenure to 9 years (108 months) instead of the initially applied 30 years to align with his repayment strategy and avoid any potential penalty risks in the future.
He has shared the official link to Axis Bank’s policy, as well as the MLP ID for disbursement (000102831163), and urged the bank to correct the loan tenure without delay.
Questions & Answers – Detailed & Informative
Q1: What exactly is the issue raised by the complainant against Axis Bank?
A1: The main issue is a case of misleading verbal assurance by Axis Bank’s DSA agent. The complainant alleges that the agent told him there would be no foreclosure charges if the loan was closed after 8 years. However, the bank’s official website clearly states that foreclosure charges apply to home loans. This contradiction could lead to unexpected financial penalties for the customer.
Q2: What are foreclosure charges in a home loan?
A2: Foreclosure charges are penalty fees charged by banks when a borrower decides to repay the entire outstanding loan amount before the agreed tenure ends. Banks impose these charges to compensate for the loss of future interest income. Foreclosure terms vary between banks, and some offer zero charges for floating-rate home loans under RBI guidelines, but fixed-rate loans often still attract charges. Always refer to the official loan agreement to confirm the applicable terms.
Q3: Why is loan tenure important for borrowers?
A3: Loan tenure determines:
- Monthly EMI amount – Longer tenure means lower EMIs but higher total interest.
- Total interest paid – A short tenure reduces total interest but increases EMI.
- Foreclosure flexibility – A tenure misaligned with repayment goals can lead to penalties or financial stress.
In this case, Shubham initially applied for 30 years but now prefers 9 years to avoid long-term interest burden and policy conflicts.
Q4: What could be the consequences of relying on verbal commitments from agents?
A4: Verbal promises, if not backed by written proof, can lead to:
- Disputes between customers and the bank.
- Financial loss due to hidden charges or policy misinterpretation.
- Lack of legal standing if the issue escalates.
Borrowers should always demand written confirmation or check the official policy documents before making loan decisions.
Q5: How can borrowers verify Axis Bank’s foreclosure policy?
A5: Borrowers can:
- Visit the official Axis Bank website and search for the “Home Loan Foreclosure Charges” section.
- Review the Most Important Terms and Conditions (MITC) provided at the time of application.
- Request an official email confirmation from the bank.
Shubham has already shared the official policy link, proving that charges are applicable.
Q6: Can the loan tenure be changed after approval?
A6: Yes, but it depends on the bank’s policies and the stage of loan processing. If the loan is not yet disbursed, tenure changes are usually easier to implement. Post-disbursement, a tenure change may require formal restructuring, which can involve additional processing fees.
Q7: What is an MLP ID in the context of Axis Bank loans?
A7: MLP ID stands for Mortgage Loan Processing ID. It’s a unique reference number used internally by Axis Bank to track the processing and disbursement of a home loan application.
Q8: What is the RBI’s stance on foreclosure charges?
A8: As per RBI guidelines, banks cannot levy foreclosure charges on floating-rate home loans taken by individual borrowers. However, for fixed-rate loans or hybrid schemes, foreclosure charges may still be applicable, and banks are allowed to levy them.
Q9: How can customers protect themselves from such miscommunication in future?
A9:
- Request all promises in writing before signing loan documents.
- Cross-check verbal information against official policy documents.
- Record important discussions with agents (with consent).
- Review the MITC thoroughly.
Q10: What steps has the complainant requested Axis Bank to take?
A10:
- Change the loan tenure from 30 years (360 months) to 9 years (108 months).
- Ensure the corrected terms are documented in the loan agreement.
- Prevent future miscommunication by aligning DSA training with official policy.
Q11: How can Axis Bank resolve this issue quickly?
A11: The bank can review the customer’s application, verify the alleged miscommunication, issue a corrected sanction letter with the desired tenure, and confirm the updated EMI schedule to the borrower in writing.
Q12: What can happen if the tenure is not changed?
A12: If the tenure remains at 30 years, the borrower may face higher cumulative interest payments and possible foreclosure charges if they close the loan earlier, despite the verbal assurance from the agent.
Q13: Why is this complaint significant for other borrowers?
A13: It highlights the importance of verifying loan terms directly from the bank rather than relying solely on agents. It also shows that even reputed banks can have communication gaps between field agents and official policies.
Q14: How to escalate if Axis Bank does not respond?
A14:
- Step 1: Contact Axis Bank’s Grievance Redressal Officer.
- Step 2: Write to the Principal Nodal Officer.
- Step 3: File a complaint with the Banking Ombudsman under RBI.
Q15: Can DSAs be held accountable for misinformation?
A15: While DSAs are third party agents, the bank is responsible for their conduct as they represent the institution during the loan process. If misinformation leads to financial harm, the bank can be held accountable.
Q16: How can customers confirm EMI details before disbursement?
A16: The sanction letter includes EMI amount, tenure, interest rate, and other conditions. Reviewing this before signing ensures no surprises post-disbursement.
Q17: Does Axis Bank offer zero foreclosure charges in any scenario?
A17: Yes, but only for floating-rate home loans given to individual borrowers, in compliance with RBI rules. Fixed-rate loans still have applicable charges.
Q18: Is loan restructuring common in such cases?
A18: Yes, tenure reduction is a form of loan restructuring and can be done if the borrower requests it before or shortly after disbursement, subject to bank approval.
Q19: What documentation should Shubham keep for his case?
A19:
- Loan application copy.
- Sanction letter.
- Screenshots or recordings of conversations with the agent (if any).
- Link to the official policy contradicting the agent’s statement.
- Written request for tenure change.
Q20: What lesson can all borrowers learn from this?
A20: Always verify loan-related claims through official sources. Relying on verbal assurances without documentation can lead to disputes and financial losses.
