• Different interest rates on home loan

Can bank charge multiple interest rates for loan taken in different years on floating rate.
2017 - 14%
2018 - 10%

now in 2019 loan as per their website for 2017 customer is 13% and for 2018 is 9% though both loans are on floating rate and one should get 9% irrespective of year.
Asked 10 days ago in Civil Law from NEW DELHI, Delhi

Floating rates are for the same reason as it is floating. You can change your home loan to different company who charges you less

Prashant Nayak
Advocate, MUMBAI
4010 Answers
2 Consultations

4.8 on 5.0

 banks have been offering loans at cheaper rates to new customers, while charging old customers a higher rate. “Banks continue to follow the discriminatory practice of offering differential rates for existing and new customers

Ajay Sethi
Advocate, Mumbai
55650 Answers
3355 Consultations

5.0 on 5.0

A floating interest rate, also known as a variable or adjustable rate, refers to any type of debt instrument, such as a loanbondmortgage, or credit, that does not have a fixed rate of interest over the life of the instrument.therefore the bank CV an change the interest rate during the life of the debt.

Regards 

Rahul Mishra
Advocate, Lucknow
2033 Answers
8 Consultations

5.0 on 5.0

The floating rate of interest will vary once in three months as the rates vary everytime.

There is no illegality in it.

 

T Kalaiselvan
Advocate, Vellore
45709 Answers
537 Consultations

5.0 on 5.0

If the cutomer had opted for floating rate of interest on the borrowed amount, then the bank is within its rights to charge the interest everytime at the prevailing rate, it need not notify the borrower everytime about this.

 

T Kalaiselvan
Advocate, Vellore
45709 Answers
537 Consultations

5.0 on 5.0

No, bank won't change rate of interest as per the floating rates norms. You have to sign one form whenever rates are changing so bank can implement current floating rates on your home loan account.

 

Kindly contact bank or branch officer.

Ganesh Kadam
Advocate, Pune
4903 Answers
34 Consultations

5.0 on 5.0

YES. AS YOU HAVE SIGNED THEIR TERMS AND CONDITION (NORMALLY YOU CAN NOT READ WITHOUT MAGNIFYING GLASS).

G Suresh
Advocate, Chennai
223 Answers
1 Consultation

4.9 on 5.0

If customer has agreed in the loan agreement for floating rate then yes the bank can charge same . Further the customer has to seek information from bank.

Banks donot inform for floating rates.

Shubham Jhajharia
Advocate, Ahmedabad
10756 Answers
39 Consultations

5.0 on 5.0

Yes the bank can charge interest without intimation if same is agreed.

Shubham Jhajharia
Advocate, Ahmedabad
10756 Answers
39 Consultations

5.0 on 5.0

A floating rate is not a fixed rate, but rather a rate that adjusts periodically based on a publicly available, short term, referenced interest rate. So, bank is well within the rights to change the interest rate periodically and nothing illegal is there as you have consented to it.

Siddharth Jain
Advocate, New Delhi
2675 Answers
29 Consultations

5.0 on 5.0

In such an agreement, Bank need not notify the borrower regarding the change in interest rate, but the same can always be checked online by the customer.

Siddharth Jain
Advocate, New Delhi
2675 Answers
29 Consultations

5.0 on 5.0

Hello,

NO bank cannot act according to their whims and wishes, they are also bind with the agreement.

Regards

Swarupananda Neogi
Advocate, Kolkata
858 Answers
2 Consultations

4.8 on 5.0

The bank can charge different rates of interest depending on the agreement terms filed . As per changing of interest they are guided by RBI and such rates are often available in website

Anand Shukla
Advocate, Delhi
300 Answers
6 Consultations

4.9 on 5.0

  1. As per the information mentioned in the present query, makes it clear that interest rates of bank are floating without prior intimation to the customer.
  2. The year/ particular month in which the loan has been given to a person, will always be the rate of interest for the person taking the loan.
  3. Bank can increase the rate of interest for the new customer, but not for the existing one prior to that change in interest rates.

Sanjay Baniwal
Advocate, South Delhi
2819 Answers
6 Consultations

5.0 on 5.0

Yes they can , they have been doing so since long but you can't say that without the knowledge or intimation to customer, in this connection I advise you to please go through the loan agreement you had with the respective bank , all is in that document.

 

Koshal Kumar Vatsa
Advocate, Gurgaon
688 Answers
1 Consultation

5.0 on 5.0

Dear Sir,

Yes. The bank is required to inform the borrower of changes in interest rates on their loan products and changes in the base / reference rate to which the floating rate of interest is linked.

Netravathi Kalaskar
Advocate, Bangalore
925 Answers
3 Consultations

5.0 on 5.0

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