FLOATING RATE OF INTEREST


i have an query regarding the floating loan taken from bank ,in which rate of interest changed by bank , my query is that under what conditions rate of interest can be changed by the bank.

 

rajan

 

 
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medical practitioner &legal studies

change of interest rate is governed by rbi in case of nationalised bank.if you take loan at at a low interest rate pl take at fixed rate.in case you get loan by floating rate you may loose or gain .see icici granted housing loan at 9% fixed rate to a person known to me.bank agent came to my house and told him to sign hurriedly and rest will be filled up by him.i told to fill up and show me. then he signed.told to get xeroxed.also i told sign each pageboth. write agreement contain total so many total pages.recently floating rate raised to 13.5%.bank issued notice to pay at higher rate.i made a draft for him and annexed the xeroxed copy of agreement.see the borrower could have plunged to such high interest which could have caused cardiac arrest for him.so much for public interest only.

 
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Advocate

Prof  S C Pratihar is correct -------The Interest rate will be changed according to the prevailign interest rates from to time 

 
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