Floating rates are for the same reason as it is floating. You can change your home loan to different company who charges you less
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.
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can bank change interest on above scenario without any prior intimation to customer
Floating rates are for the same reason as it is floating. You can change your home loan to different company who charges you less
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
A floating interest rate, also known as a variable or adjustable rate, refers to any type of debt instrument, such as a loan, bond, mortgage, 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
The floating rate of interest will vary once in three months as the rates vary everytime.
There is no illegality in it.
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.
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.
YES. AS YOU HAVE SIGNED THEIR TERMS AND CONDITION (NORMALLY YOU CAN NOT READ WITHOUT MAGNIFYING GLASS).
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.
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.
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.
Hello,
NO bank cannot act according to their whims and wishes, they are also bind with the agreement.
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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
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.