Increse in rate of interest on housing loan
Dattatreya
(Querist) 08 August 2015
This query is : Resolved
I have availed Housing loan of 30 Lakh from Nationalized Bank During Nov 2009. I am regularly paying the EMI without any default. Now The Banker is asking for the Balance Confirmation Which is nearly equal to principle Only. After inquiring it is found that They have increased the Rate of Interest over a period of Time. As per the Sanction letter The Manager has to Intimate me the increase in rate of interest and reschedule the EMI but the same was not done.Now the Banker is threatening me to sign the confirmation other wise they will initiate the recovery proceedings. I am worried even after prompt repayment without single lapse for 6 years they are initiating the recovery proceedings. Kindly advise me whether there is clause under Reserve Bank of India where in i can complain and get the revrsal of Excess interest Charged.
Kumar Doab
(Expert) 08 August 2015
These seems to be two different things.
1. Default by Manager/Bank/BM as 'As per the Sanction letter The Manager has to Intimate me the increase in rate of interest and reschedule the EMI but the same was not done.'
2. Confirmation of balance; As there is no clause of No escalation of ROI, the bank can amend ROI.
You can raise written under proper acknowledgment objection citing clauses in agreement for reference if required in future to claim default, compensation etc.......................
If you have a responsibility to confirm the balance then you should.
However you may better show all docs on record to a counsel specializing in banking/consumer matters than acting on your own.
Rajendra K Goyal
(Expert) 09 August 2015
Your home loan document specify condition for change of interest on home loan on change of base rate.
You should sign the balance confirmation.
Bank calculate and add the interest daily / monthly basis as per agreement. Initially the interest is high and from EMI the principal is nominally recovered.
You can lodge complaint to higher authorities for not informing change in interest.
You can deposit more than your EMI to get benefit in interest payment.
