Hello to all. I have availed Housing loan for purchasing open plot with the intention of constructing a house. The original terms & conditions insist that I start constructions within 2 years from thei date
of sanction;failing which the Bank will be charging higher rate of interest as deemed fit. The Bank kept silent for a period of 31 months beyond mandatory 2 years and suddenly charged me with excess interest rates and recovered arrears from my Savings A/c without notice.
My Questions are: 1 ) Whether the Bank has the right to invoke their subsequent changes in the scheme with regard to interest rates & Terms & Conditions be made applicable to suit their convenience and apply penal interest rates to the loan a/c as they deem fit without intimating the borrower. 2) Even if the Bank has right to do, can they keep the borrower for 31 months without charging penal rates and suddenly go back and charge the same without intimation.
Since, I have filed a case against the Bank, I request your guidance in the matter.