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What to do when bank is increasing interest rate of loan arbitrarily?
28-Sep-2023 (In Banking / Finance Law)
Sir, i had secured a loan from HDFC LTD of 6.50 lacs aganst free hold property@ 10.5 % interest rate for period of 180 months way back in 28th sept'07. The interest terms were RPLR* MINUS 3.40=10.5% applicable that time. Now with 10 year passed, and with few defaults payment here and there due to slack business, now streamlined, the rate of interest being charged is 12.75% which is very high. As per RBI notification and now a days bank obliging loans @ 8.35%, they have not reduced my interest rate, citing reason that due to defaults in payments. Couple of days back, when confronted about same, they said that i can go for review whereby, on payment of Rs. 1250/- they will renegotiate the rate of interest to 9.75%. Sir, fail to understand, Bank increase the rate of interest whenever, RBI increase CRR/REPO RATE, but bank don't reduce when it iw other way round. Sir, please advise how to proceed with bank so that they bring rate of interest in line with prevailing 8.35% or somerwhere to
What you can do is get the loan from other Bank who provides you with lower interest rate then that offered by your existing Bank and tell them you want the loan to pay your existing loan amount. For further assistance you can call me and take my appointment.
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Adv. Bankim Mehta
Mumbai | 200+ Answers
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need to check your loan agreement, if you have agreed for the floating rate of interest then , bank can do so whenever interest rate goes up , it will also beneficial when interest rate goes down bank has to change present rate of interest ion loan. however if you have agreed for fixed rate of interest then bank can not increase the rate of interest, such cases you can issue legal notice though advocate
Adv. Sudhir P
Adv. Sudhir P
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