I have taken a Home Loan from HDFC Home Loan service in India last year. The interest rate charge type was floating, wherein if the rate of interest increases/decreases anytime in future, the same would apply to me.
Some months, back the rate of interest increased from 9% to 11.25% and the same got applied to my loan as well. Consequently my EMI increased multifold.
Recently HDFC Home Loan service announced a reduction in the home loan interest rate to 10.5%. However, this reduction is only being applied to new borrowers and is not being applied to my loan as that would mean a cut in their income! This, in spite of my home loan type being floating.
This simply is "cheating" by the bank as I cannot even go for re-finance to another bank as HDFC charges me a huge foreclosure fee (which is a deterrent).
Thus, I am stuck with an ever increasing home loan interest with absolutely no recourse in sight.
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