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Home Loan Interest Rates!!

(Querist) 27 January 2011 This query is : Resolved 
I have taken home loan from private bank at floating interest rates and at the time of sanction, it was 7% and during interest rise, it rose to 12.75% and then came down to 11.5% and now again rose to 13%. As I see other public sector banks, the interest rates are not that high. When the interest rates rose, my bank went faster in raising those but when those came down, the bank was much slower as compared to market. For new customers, my bank is offering 9.25%. I understand that I have signed loan agreement with bank but does it mean that banks can do anything? Even RBI had issued guidelines to banks on the same. What is the best option for me against the bank as this is very unfair to charge so different interest rates from existing and new customers.
malipeddi jaggarao (Expert) 27 January 2011
Since you have opted for floating rate of interest, the rate changes whenever there is change interest rates. I do not find any solution to your problem except to foreclose the loan (for which there will be penalties) and shift it to some other bank after calculating the loss.
Amit Minocha (Expert) 27 January 2011
first you see at what rate above / below PLR you signed the loan agreement and then compare the rate charged with rate available.

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