Housing loan from Andhra Bank
Increase in rate of interest unlawfully

Sir,

A housing loan of Rs. 2, 25, 000/- was sanctioned to me by Andhra bank, Ashok Marg, Jaipur under fixed rate of interest scheme @ 7.5% P.A. on dated 06.2. which was required to be repay in 60 installments of Rs. 4, 750/- Per Month. Recently I have come to know that monthly installment has been increased from Rs. 4, 750/- to 5200/-without intimating to me. On enquiry, it was informed by the bank officials that the fixed rate of interest scheme on housing loan has been seized some time back and is replaced with the scheme of “Floating Rate of interest scheme”. Therefore, interest rate has been increased from 7.5% PA to 9.75% PA.

I failed to understand the working style of bank who even not bother to intimate the such drasting development which causes unnecessarily financial hardship/losses. It is expected particularly from a nationalized bank that they would inform their customer in advance about any changes in the prevailing scheme or any increase/ deduction in the installment from their account.

Further, I neither opted nor given any consent for the so called “floating rate of interest scheme”. The act of bank is wholly arbitrary and unjust. It is common phenomena that whenever any scheme is introduced, it has a prospective effect and has no bearance on the earlier scheme.

May I expect some help from the Forum.

Company: Housing loan from Andhra Bank
Country: India

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