[Resolved] State Bank of India — Home Loan Interest Rates | |||
Hi, I had taken a SBI Homeloan (August 2011 Maxgain Product). My loan agreement with the SBI clearly states of 'no foreclosure/pre-payment charges'. The interest rate is linked to base rate (10% - unchanged since the time my loan was processed) and the interest rate is 11% (10% base rate + 1% margin). SBI has launched a new product for its new customers with a reduced margin of 0.4% and hence, the loan interest rate can be worked out at 10.4%. SBI is asking now to pay flat 1% of the total sanctioned amount at the branch for reducing the interest rate of existing customers. This is a mockery of the RBI's directives of introducing transparency in the loan rates and schemes and mockery of the philosophy behind introduction of base rates. Even if one assumes taking a fresh loan with no termination charges, the processing cost is Rs.10000/- + 0.2% mortgage charges. How can SBI justify a processing charge of 1% for switching from a floating rate product based on base rate to again a floating rate product based on base rate. Move is completely anti-competitive and needs serious action by the ombudsman. More details about the case can be provided - please write back at jaydip.[protected]@gmail.com Thanks, Jaydip Cell: +91-[protected] Was this information helpful? | |||
Aug 13, 2020 Complaint marked as Resolved | |||
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