I am having a home loan of Rs 21.50 lakh on floating rate @ 9.6% from HDFC LTD. Now ROI got down to 8.5 %. I am asking bank to reduce my ROI, BANK is taking some charge for it. Is it ok by law or not? Please help.
I have another home loan of Rs 4 lakh and repaying from last 5 years, now I want to close it, but bank is also demanding some charges for it and asking for my 6 months’ bank statement. Kindly give your suggestion/advice on it.
Ans: The increase/ decrease made to your interest rate would depend on your interest cycle as agreed upon with the lender. There is no mandate upon the bank / financial institutions to pass on the advantage/ disadvantage to you immediately. However, in your place I would be relieved if the interest rate has not been changed lately since last 3-4 rate revisions has consistently been on the upward side.
For your other loan, a lender is under their rights to ask for your bank statement for the last 6 months and foreclosure charges are also a policy they are allowed to charge.
In future I would suggest going through the terms and conditions offered by the lender closely since they are liable to disclose such charges. This can help you take a well-informed decision on choosing your lender.