LawRato

Whether a customer is liable to pay interest rate over current rate?


29-Dec-2023 (In Property Law)

I have taken a Home Loan from HDFC in feb 2014 at 10.25 % interest rate floating . Recently I came to know that the Home Loan rate offered by HDFC to fresh customers is at 9.55% per annum When I enquired about changing my Home Loan rate of interest to 9.55% , I was assured of the same after paying a fee of Rs. 12,000/- plus. Want to know whether a customer is liable to pay a fee in order to get the home loan rate of interest to the current rate from the same bank ? Also , is it not liable to change for the bank to alter the rate of interest automatically since its a floating rate ?

Answers (2)

Answer #1
787 votes
Yes. For this act you can issue legal notice to the said bank and also if u wish you may prosecute it by filing litigation against the same
So u need to appoint a lawyer and opt proper legal course of action
Advocate Sagar Kothari

Adv. Sagar Kothari

LawRato Pune | 400+ Answers
CONTACT NOW
Answer #2
590 votes
Floating rate as the name suggests should be "floating" and should be revised based on the applicable rate of interest. However, perhaps you need to check you loan documents, because many a times, banks provide for a "lock in" period for the rate of interest on sanction, and after a period (say 2/ 3years) the rate of interest gets "unlocked" and is revised based on prevailing interest rate. The interest period is locked in to give benefit to the client, if there is an upward revision in the interest rates. Perhaps the fee of Rs 12000 is being sought to break the lock in period. Therefore, please go through the terms and condition for your loan documents

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.

Report abuse?

Connect with top Property lawyers for your specific legal issue
Connect with a Lawyer
Comments by Users

No Comments! Be the first one to comment.

"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

All Answers

Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

LawRato