Commercial Bank Loan
I am having a very bad experience with Commercial Bank. The mistake I have done is, I took a personnel loan from the bank one year ago and I was repaying the loan everymonth and it was going fine. Last week when I checked about the status of my loan, I noticed that the interest rate for my loan has increased from 10% to 14%(quite weird and drastic..isnt it?) and also the total number of installments also increased...all these happened without any prior intimation to me from the bank. I was told from the customer care person that they have instruction from the Central Bank for the increase of interest rate. Is that true? and also he told me the market situation is also like this. Bank dont have another way than squeesing people like me to adapt the market condition? When I checked with colleagues, they also experiecing the same habit from the bank. How about you?
when u were signing the loan agreement, they must have mentioned in there that the rate can change (up/down).
and yes, all banks, if it is in the loan agreement, can do this. however, they must inform the customer about that.
pls guys, read your loan agreements before you sign anything and think it over, to avoid such surprises.
If you're looking for a problem, you're probably gonna find one.