Its a nice article showing truth behind the floating loans. Banks never pass on the reduced interest rates to the customer. But at the same time fixed interest rates are also not fixed and can be increased every 3-4 years depending on the banks.
Best way to go forward is to take a loan from a public sector bank. They are always slow in increasing interest rates and normally keep a low markup. They always change the bench mark rate which is good for us in the long term.
RE:A Nice Article
by VenkataSivaKumar Naramsetti on Oct 08, 2007 09:11 PM Permalink
I too agree very much. I have an ICICI home loan with floating rate. Whenever the floating rate increases then they will increase my intrest rate. But if the rate goes down then they will say it applies to new customers only. I dont understand that logic. Take a loan from public sector bank only. They may take time in processing your application. But their policies are pretty fair and transparent.
RE:A Nice Article
by Sameer N on Oct 09, 2007 09:50 AM Permalink
I agree with Siva, even i have taken home loan from HDFC but when interest rate increases HDFC bank increases int rate but when it reduces they tell applicable to only new custormers. why this double game with people. so my dear freinds be careful while taking loan.so better option is fixed one. Floating interest rate means only increasing interest rate not down remember.
