Interest rate
Arjun Arjun
(Querist) 22 August 2014
This query is : Resolved
Madam/Sir,
I availed a home loan of Rs.5 lakhs from Federal bank Ltd in June 2013 at floating interest rate 10.25% p.a.In the loan document ,it was written that the payable interest will be 0.05% above the base rate or any rate ,as fixed by the bank from time to time.At the time of availing loan,the base rate was 10.20%.
In November 2013,I got a letter from bank that they're going to increase the base rate by 10 basis points and the new interest rate payable by me will be 10.60% p.a.
I've been paying the EMI at these rates without making any default.
But,now,I came to know that bank's base rate has not changed since I availed the loan.The bank was telling lie to me that they revised the base rate and thereby increased my loan interest rate.
Also,eventhough the bank set my loan interest rate at 10.60 p.a,they give loan to new borrowers(irrespective of their credit score/risk) at 10.25% p.a.
I think the bank has cheated me.Can I get the refund of the excess interest they've charged from me?Please help me.
Thanking you,
Yours faithfully,
Anoopkumar
Kumar Doab
(Expert) 22 August 2014
How did you come to know that the bank’s base rate has not changed?
If you have copy of publication of Bank’s Base rates then relate it with letter issued to you.
If the facts are on your side you have a good case.
Arjun Arjun
(Querist) 23 August 2014
Sir,I have info from bank's website that the rate has not changed
Rohan Pradhan
(Expert) 23 August 2014
You can file a complaint in consumer forum of competent jurisdiction if u r not satisfied with the bank response.
Rajendra K Goyal
(Expert) 23 August 2014
If it is a public sector Bank, get the information / circulars of base rate change through RTI.
Bank may give loan to new customers at lower rate to attract business, nothing irregular in it. Since your rate of interest is linked to .5% above base rate, it would continue as such. For this you have no case as the interest is being charged on contracted rate.
Bank may also charge higher rate on default if agreement so permit.
Rajendra K Goyal
(Expert) 23 August 2014
However, if you feel unsatisfied you can switch over the Bank after calculation of gains and loss due to switch.
Kumar Doab
(Expert) 23 August 2014
Your contention is:
---The bank issued a letter that Base rate is changed hence the interest rate being charged to you shall change and applied new interest rate.
---There was no change in Base rate as per publication available at Bank's webs site.
You may write to BM of the branch and seek a written reply.
At times Bank's do not update their web sites............................willingly/unwillingly.
However written reply from BM should be sought and obtained.
If there was in fact no change in base rate ........................that is the bone of contention....................you have some merit.
It shall be appropriate to show all docs on record to a local lawyer handling consumer/bank cases and proceed under expert advice of the lawyer that has examined the record.
V R SHROFF
(Expert) 23 August 2014
Issue Notice to banker , for Change Banker.
. Change banker, Thereafter file Consumer Complaint, for loss incurred to you..
T. Kalaiselvan, Advocate 
(Expert) 27 August 2014
The contracted rate of loan interest is at the floating rate which keeps changing every time, you have agreed to it while availing loan, however, even now you have option to change the banker by opting for prevailing rates with the new banker.
