I loaned a amount of money from GE Money at 11.50% per annum. The tenure of the loan was 12 years. After a period of only 2 years in Feb GE Money suddenly increased the Interest Rate to 12.88% per annum. That is an increase of 1.38% at a time when most Banks were reducing Interest Rates due to economic recession.
When i told GE Money that i wanted to close the loan since they had increased the Interest Rate too high, they applied a penalty of 4% Service Tax as foreclosure charges!
I am at present being blackmailed on both sides. If i continue the loan i pay extraordinarily high Interest Rate. If i dont, then i pay extraordinarily high Foreclosure Charges.
I dont know if there is a way out or not... But my advice to all future loan seekers... DONT GO TO G.E. MONEY...
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